S&P affirms Merck, off watch

Standard & Poor's said it affirmed its BBB+ long-term and A-2 short-term corporate credit ratings on Merck KGaA.

The ratings were removed from CreditWatch, where they were placed on March 13, following Merck's hostile offer for Schering AG (A/Watch negative/A-1), S&P said noting that the resolution follows Merck's announcement that it has abandoned this bid.

The outlook is stable.

"The rating action reflects Merck's currently strong financial profile, with significant financial flexibility within the ratings, despite its more aggressive financial policy, as evidenced by the attempted takeover," said S&P credit analyst Olaf Toelke.

The agency added that the ratings on Merck continue to be supported by its improving operational and financial performance.

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