(Finance) – Fitch Ratings has raised the Long-Term Issuer Default Rating (IDR) of AstraZenecaAnglo-Swedish multinational biopharmaceutical company, from “A-” to “TO“. The outlook is positive.
The upgrade reflects the vision of a sustained strong top line growthleading to an EBITDA leverage expected to remain well below 2x in the medium term. It also reflects the group’s consolidated position in the innovative pharmaceutical sector, supporting the acceleration of organic growth in most of its selected treatment areas, following investments in internal and external research and development (R&D) capabilities, resulting in an EBITDA margin above 30% and offsetting the decline in treatments due to the loss of exclusivity.
The positive outlook reflects strong outlook for existing portfolio and pipelinewhich could support above-rating revenue growth and margins, leading to higher free cash generation and lower-than-expected leverage over the next 12-18 months, based on Fitch’s updated capital allocation assumption that prioritizes organic growth investments over transformative M&A. AZ’s robust pipeline includes 20 novel molecules in Phase 3 clinical trials, many of which have multi-billion dollar peak sales potential.