S&P rates Eli Lilly notes AA-

Standard & Poor's said it assigned an AA- rating to Eli Lilly & Co.'s proposed $1 billion senior unsecured notes.

The corporate credit rating on Eli Lilly is AA- and the outlook is stable.

The ratings reflect an expectation that the financial risk profile of this company will remain minimal given its very low leverage, S&P said.

Eli Lilly has a strong business risk profile, considering its well-established position in the high-margin, patent-protected market for prescription drugs and a well-stocked, late-stage new product pipeline, the agency said.

The key uncertainty facing Eli Lilly is the extent to which its diverse pharmaceutical product portfolio and new product introductions will offset losses from products subject to patent expirations, S&P said.

But, the agency said it believes the company will continue generating good levels of profitability, strong discretionary cash flow, high cash balances and maintain very low leverage.

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