Abstract: Credit quality in the European health care sector stayed stable during the second half of 2008, and Standard&Poor's Ratings Services expects it to remain so in 2009. We expect companies' strong operating performance to continue, and the largest pharmaceutical firms (Big Pharma) to be largely unscathed by the global economic slowdown. Therefore, the outlook is stable on most rated companies. Yet, more aggressive financial policies by some companies have negatively affected ratings and outlooks in 2008 and could continue to do so next year. For example, we downgraded Roche Holding AG (AA-/Stable/A-1+) by two notches in July when it announced the debt-financed acquisition of the outstanding publicly held minority interest of its then 56% owned subsidiary, U.S.-based biopharmaceuticals

Brief Excerpt: RESEARCH Ratings Definitions Industry Report Card: European Big Pharma Immune To Economic Downturn, But M&A Could Hit Credit Quality Publication date: 09-Dec-2008 Primary Credit Analyst: Olaf Toelke, Frankfurt (49) 69-33-999-125;...

Report Type: Commentary
Sector: Asset-Backed Securities, Consumer Products, Corporations, Global Issuers, Health Care, Structured Finance
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 S&P Credit Research
S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.