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 lower than best-in-class margins in its pharmaceuticals business outside the U.S. Total financial debt was Swiss franc (CHF) 8.2 billion ($6.6 billion) at Dec. 31, 2006. With group sales of CHF42 billion in 2006, Roche ranks among the top six global pharmaceutical companies, including its two majority holdings in U.S.-based Genentech Inc. (AA/Stable/A-1+) and Japan-based Chugai Pharmaceutical Co. Ltd. (Chugai). The group's
