...Fitch Ratings has revised Switzerland-based pharmaceutical company Novartis AG's Outlook to Negative from Stable. Its Long-Term Issuer Default Rating (IDR) and senior secured rating have been affirmed at `AA' and Short- Term IDR at `F1+'. Fitch has also affirmed at `AA' the unsecured rating of the notes issued by Novartis Finance S.A., Novartis Capital Corp., and Novartis Securities Investments Ltd., all guaranteed by Novartis AG. The Negative Outlook assigned to Novartis' `AA' rating reflects its weakening credit ratios, driven by the recent pressure on sales growth and profitability coupled with investment in restructuring the Alcon division, as well as generous shareholder returns. In its pharma business, Novartis is currently experiencing a period of falling sales due to patent expiries and increasing pricing pressure, which at present cannot fully be compensated by new product launches. The `AA' rating remains however supported by the group's strong competitive position in the global...
