Johnson & Johnson remains a AAA rated company even after it agreed to pay $30 billion cash for Swiss drugmaker Actelion Ltd., Moody’s Investors Service said in a statement on Thursday.
The company’s rating outlook is stable, Moody’s said. The company retains its rating given its large scale, diversity and strong profit margins, the ratings company said.
But the Actelion deal is negative for J&J’s credit because of the steep valuation, and because it depletes cash, Moody’s said. The drugmaker’s debt levels are likely to grow over time.
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