Summary: Roche Holding AG

Leading global player in fast-growing oncology indication. Excellent late-stage pipeline of drugs in development. Several key products exposed to patent expiry effects in the coming 30 months. High EBITDA margins relative to peers. Strong free cash flow generation. Conservative financial policy. The stable outlook on Switzerland-based global pharmaceutical company Roche Holding AG (Roche) reflects S&P Global Ratings' assumption that the company will maintain credit-protection metrics over the next 12-24 months of pension- and lease-adjusted ratio of funds from operations (FFO) to net debt of more than 45% and debt to EBITDA below 2x on a sustainable basis. We also take into account our view that Roche will likely maintain its excellent business positions and superior cash-generating ability, assuming resilience of

...Outlook: Stable The stable outlook on Switzerland-based global pharmaceutical company Roche Holding AG (Roche) reflects S&P Global Ratings' assumption that the company will maintain credit-protection metrics over the next 12-24 months of pension- and lease-adjusted ratio of funds from operations (FFO) to net debt of more than 45% and debt to EBITDA below 2x on a sustainable basis. We also take into account our view that Roche will likely maintain its excellent business positions and superior cash-generating ability, assuming resilience of its drug portfolio as well as a robust pipeline of new products. The competition from bio-similar products is expected to accelerate from 2018, which could affect the group's earnings next year compared to 2017, which we expect to be a good year in terms of performance. Moreover, the ratings provide some flexibility for midsize debt-funded acquisitions....

Summary