Fitch lowers GlaxoSmithKline

Fitch Ratings said it downgraded GlaxoSmithKline plc’s long-term issuer default and senior unsecured ratings to A from A+.

The outlook is stable.

Fitch also said it downgraded the senior unsecured rating for the debt issued under GlaxoSmithKline Capital plc to A from A+ and assigned a senior unsecured rating of A to debt issued by GlaxoSmithKline Capital Inc.

The debt issued by both entities is fully and unconditionally guaranteed by GlaxoSmithKline, the agency said.

The downgrades reflect a view of a weakening business risk profile for the company, characterized by comparatively high sales at risk for its innovative pharmaceutical operations, Fitch said.

A greater degree of top-line volatility is expected over the four-year rating horizon, along with a heightened focus on pricing and value by payors, the agency said.

These trends are partially mitigated by established product sales, the launch of new respiratory treatments and accelerating growth in its anti-viral and vaccines franchises, Fitch said.

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