Moody's changes GlaxoSmithKline view to negative

Moody's said it changed to negative from stable the outlook of GlaxoSmithKline plc and its guaranteed subsidiaries.

The change in outlook follows the company's Dec. 3 announcement of its intention to acquire Tesaro for $5.1 billion.

At the same time, Moody's has affirmed the company’s A2/(P)A2 long-term and (P)Prime-1 ratings.

“We have changed GSK's outlook to negative as the company will deleverage more slowly than expected following the acquisition of Tesaro. While the acquisition allows for a solid strengthening of GSK's oncology franchise, we expect credit metrics to remain weak for a prolonged period of time,” said Knut Slatten, a Vice President – Senior Analyst at Moody's, in a news release.

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