The ratings on Switzerland-based pharmaceuticals and diagnostics group Roche Holding AG (Roche) reflect the group's continued excellent business position, based on high growth rates in its pharmaceuticals division, its global No.1 position as a provider of oncology drugs, its well-stocked late-stage pipeline, and its high free cash flow generation. The ratings are constrained by Roche's less conservative financial policy and sub-par financial risk profile pro forma for the announced minority buyout of its 56% owned subsidiary U.S.-based biopharmaceutical company Genentech Inc. (AA-/Stable/A-1+). The company's total financial debt was Swiss franc (CHF) 5.6 billion ($5.4 billion) on June 30, 2008. With constant-exchange-rate (CER) sales growth of 10% in the first nine months of 2008, Roche continued to improve its pharmaceutical sales
