With Merck acquisition of Schering-Plough complete, Fitch downgrades Merck; upgrades Schering
Associated Press
11/04/09 4:35 PM EST
NEW YORK — A day after drugmaker Merck & Co. completed its $41.1 billion purchase of rival Schering-Plough Corp., Fitch Ratings Service on Wednesday cut its ratings on Merck and upgraded Schering-Plough.
Fitch downgraded Merck's issue default rating by one notch, to A+ from AA-, and also lowered its senior unsecured debt rating on Merck. At the same time, it raised Schering-Plough's issuer default rating to A+ from BBB+ and raised Schering-Plough's senior unsecured debt rating.
The deal involved about $8.5 billion in debt.
Fitch expects the Whitehouse Station, N.J., company's revenue to fall next year after the patent on the blood pressure drug Cozaar expires. It expects growth in the following years. The outlooks on both companies are now stable, the company said.
In afternoon trading, Merck shares climbed $1.95, or 6.4 percent, to $32.62.
