Fitch rates Royalty Pharma loans BBB-

Fitch Ratings said it assigned BBB- ratings to RPI Finance Trust's (Royalty Pharma) new secured term loan facilities in a total amount of $1 billion.

The incremental facilities comprise a $200 million term loan A and an $800 million term loan B.

Fitch said it anticipates the new borrowings will be mainly used to fund the purchase of some rights to royalty interests in Keytruda.

In addition, Fitch affirmed the company’s BBB- long-term issuer default rating and its existing senior secured bank credit facility ratings at BBB-.

The agency said the ratings reflect the company’s good base of contractual royalty streams generated from the sale of patent-protected pharmaceutical products and its ample free cash flow relative to its debt.

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