Research Update: Bristol-Myers Squibb Co. 'A+' Rating Affirmed On Completion of the Acquisition of Celgene Corp.; Outlook Stable

Pharmaceutical manufacturer Bristol-Myers Squibb Co. announced it completed its acquisition of Celgene Corp. Pro forma for the acquisition, we expect leverage in the low-2x area and a decline to the mid- to high-1x area in the next year. We expect average leverage will remain below 2x. This contrasts with our previous expectation that leverage could decline to the high-1x area in 2020 but remain in the high-1x to low-2x area. We are affirming our 'A+' issuer credit rating and unsecured debt rating on Bristol-Myers Squibb. We are also affirming our 'A-1+' short-term rating on the company. We are affirming our ratings despite the initial increase in leverage because we believe leverage will decline comfortably below 2x given higher-than-expected sale proceeds

... Co. announced it completed its acquisition of Celgene Corp. - Pro forma for the acquisition, we expect leverage in the low-2x area and a decline to the mid- to high-1x area in the next year. We expect average leverage will remain below 2x. This contrasts with our previous expectation that leverage could decline to the high-1x area in 2020 but remain in the high-1x to low-2x area. - We are affirming our 'A+' issuer credit rating and unsecured debt rating on Bristol-Myers Squibb. We are also affirming our 'A-1+' short-term rating on the company. - We are affirming our ratings despite the initial increase in leverage because we believe leverage will decline comfortably below 2x given higher-than-expected sale proceeds from Otezla and a higher-than-expected tax benefit, which will result in lower-than-expected net debt after transaction close. - Our outlook is stable and reflects our expectation for pro forma mid- to high-single-digit percentage...

Research Update