The ratings on Switzerland-based pharmaceuticals and diagnostics group Roche Holding AG (Roche) reflect the group's excellent business position, based on high growth rates in its pharmaceuticals division, its global No.1 position as a provider of oncology drugs, well stocked late-stage pipeline, and conservative financial profile. The ratings are constrained by Roche's under-representation in the high-margin U.S. pharmaceuticals market and below best-in-class margins in its pharmaceuticals business outside the U.S. Total financial debt was Swiss franc (SFr) 9.7 billion ($7.5 billion) at Dec. 31, 2005. With group sales of SFr35.5 billion in 2005, Roche ranks among the top 10 global pharmaceutical companies, including its two majority holdings in U.S.-based Genentech Inc. (A+/Stable/A-1) and Japan-based Chugai Pharmaceutical Co. Ltd. (A-/Stable/--). With a
