Leading global player in fast-growing oncology indication. Excellent late-stage pipeline of drugs in development. Product portfolio with no stringent patent expiry effects expected. Relatively high EBITDA margins in a peer context. Strong free cash flow generation. Conservative financial policy. The stable outlook on Roche Holding AG (Roche) reflects the group's well established market positions, both in pharmaceuticals and diagnostics. It also reflects our expectation that the group will predominantly use its enhanced free cash flow-generation for debt reduction in 2013 and beyond. Accordingly, we expect management to avoid large debt-funded acquisitions. We consider a sustainable and rising pension-adjusted ratio of funds from operations (FFO) to net debt of 60% to be consistent with the current ratings. Moreover, the ratings provide
