S&P rates Amgen notes A

S&P said it assigned an A rating to Amgen Inc.’s announced offering of senior unsecured notes to be issued in two tranches due in 2048 and 2051.

The proceeds will be used to refinance a mix of seven existing issues maturing 2037 through 2043, the agency said.

The transaction does not affect the company’s A corporate credit and senior unsecured debt ratings because the expected leverage at the end of the transaction will remain the same and maturities will be extended out, S&P said.

Amgen’s business and prospects also is unchanged, as performance has remained steady and in line with expectations with high single-digit revenue increases and adjusted EBITDA margins that have grown to more than 50%, the agency said.

But large debt-financed acquisitions remain a distinct possibility and reflected in the agency’s two-notch negative modifier on Amgen’s ratings for financial policy, S&P explained.

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