S&P: Gilead Sciences notes A

S&P said it assigned an A rating to Gilead Sciences Inc.'s proposed offering of senior unsecured notes.

The rating is the same as the rating on the company's existing unsecured notes, the agency said.

The proceeds will be used for general corporate purposes, which may include the repayment of debt, working capital, payment of dividends, repurchase of common stock pursuant to a share repurchase authorization and future acquisitions, S&P said.

The company has a corporate credit rating of A and stable outlook.

The ratings reflect the company's leading position in the HCV and HIV treatment categories, successful and productive research and development program and strong profitability, S&P said.

These factors are offset by its narrow therapeutic focus and significant product concentration, the agency said.

The company’s strong sales and cash flows have enabled it to maintain very strong credit measures with debt leverage of less than 1.5x, which will continue to decline, S&P said.

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