...Rating Outlook Remains Negative: Fitch's rating outlook for the global pharma sector remains negative, with net 29% of its rated global pharma universe on Negative Outlook or Rating Watch. The negative rating outlook reflects companies' willingness to stretch financial profiles in the near term to position themselves for the rapid changes taking place in the industry. Reduced Debt Capacity, Rating Headroom: In Europe, Bayer's `A' rating remains on Negative Outlook, as it continues to repair its balance sheet following its 2014 Merck & Co consumer health acquisition. UK players GSK (A+/Negative) and AstraZeneca (A+/Negative) have Negative Outlooks due to weaker cash flows as a result of loss of patent protection for key blockbuster drugs and increased investment in bringing late-stage pipeline drugs to market. In the US the announcement of the combination Pfizer (A+) with Allergan (BBB-, formerly Actavis) has led to a Negative and Positive Watch, respectively, to be resolved once the details...
