...The downgrade of Novartis AG's Long-Term Issuer Default Rating (IDR) to `AA-' from `AA' reflects Fitch Ratings' view that Novartis is likely to prioritise bolt-on acquisitions as a result of its continued portfolio transformation started in 2014, which has accelerated since end-2017. This acquisitive strategy, combined with generous shareholder distributions and higher R&D investment due to a shift towards innovative medicines, is likely to sustainably bring leverage above the levels prior to 2017. Under the current IDR Novartis has more headroom to pursue its strategy, resulting in the Stable Outlook....
