Moody's rates Alcon loans Baa2

Moody's Investors Service said it assigned a Baa2 rating to Alcon Inc.'s facilities.

The outlook is stable.

The rated facilities include a $800 million five-year senior unsecured term loan B, €350 million five-year senior unsecured term loan C and $1 billion five-year senior unsecured revolving credit facility.

The loans are senior unsecured obligations of Alcon Inc.

The proceeds from the above facilities were used, alongside a $500 million three-year senior unsecured term loan A, $1.5 billion bridge-to-bond senior unsecured term loan and about $300 million equivalent local drawn lines, to fund a $3 billion payment to Novartis AG.

The proceeds also contributed to a cash balance of about $500 million at closing of the spin-off from Novartis AG in April 2019, Moody's noted.

The ratings reflect the company's large scale and leading positions in the market for eye care devices and products, supported by its comprehensive product portfolio in this segment, the agency said.

The ratings also consider its conservative financial policy, resulting solid credit metrics pro forma for the spin-off and excellent liquidity, Moody's said.

These credit strengths are partially offset by the company's exposure to regulatory risks, including downward pricing pressure, the agency said.

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