The ratings on Switzerland-based pharmaceuticals and diagnostics group Roche Holding AG (Roche) reflect our view of 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 its high free cash flow generation. The ratings are constrained by Roche's less conservative financial policy than in the past and below-par financial risk profile on a pro forma basis. The company's total financial debt was Swiss franc (CHF) 4.1 billion ($3.9 billion) on Dec. 31, 2008. With group sales of nearly CHF46 billion in 2008, including its two majority holdings in U.S.-based Genentech Inc. (AA-/Stable/A-1+) and Japan-based Chugai Pharmaceutical Co. Ltd. (Chugai; not rated), Roche
