S&P rates Merck Finanz bond BBB+

Standard & Poor's said it assigned its BBB+ senior unsecured debt rating to the €500 million bond issued by Merck Finanz AG and guaranteed by parent Merck KGaA (BBB+/stable/A-2).

Proceeds will be used for unspecified corporate purposes and the refinancing of existing debt.

The rating on the bond is equalized with the long-term corporate credit rating on Merck, reflecting the existence of insufficient priority liabilities ranking ahead of the issue, the agency said.

The ratings on Merck are supported by its improving operational and financial performance as a result of the high market share of its growing chemicals business sector, the strongly improved outlook for its Liquid Crystals division and the positive early track record of its anticancer drug Erbitux, the agency said.

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