CORPORATESISSUER COMMENT 5 MAY 2015PFIZER INC. (PFE)Moodys Senior Unsecured Rating A1Moodys Outlook STABond-Implied Rating Aa3CDS-Implied Rating AaaEDF-Implied Rating AaaAs of 05/04/2015ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.Market Signals ReviewPfizer Inc.: Market Signals Strong and Consistent The market-implied ratings for Pfizer were very strong with low volatility over the last 90 days. The CDS- and EDF'-implied ratings remain unchanged at Aaa, where the former has been since February of 2014 and the latter since July of 2012. The bond-implied rating stayed in a narrow band between Aa2 and Aa3 (Figure 1).FIGURE 1. PFIZER: MOODYS AND MARKET-IMPLIED RATINGS, LAST 90 DAYS (DAILY DATA)The bond-implied rating has shown the greater volatility recently. It fluctuated numerous times between Aa2 and its current position of Aa3 over the last three months. Three years ago, on May 4, 2012, the bond-implied rating for Pfizer was Aa1. It dipped to a low point of A3 in November 2013. Since that date it has gradually advanced to the current level of Aa3.MOODY'S ANALYTICS CORPORATES2 5 MAY 2015 MARKET SIGNALS REVIEW : PFIZER INC.: MARKET SIGNALS STRONG AND CONSISTENTThe move has not been steady; for example, over the last 12 months the bond-implied rating fluctuated on many occasions between an apex of Aa2 and a nadir of A1.Investors do not currently appear especially concerned over the several risk factors listed in the Moodys ratings view below, including a potential split in the companys businesses. Pfizer has maintained a positive bond-implied ratings gap on most days over the last year.According to our ratings gap conditioned transition matrices, companies rated A1 with a bond implied rating of Aa3 have outperformed t...
