Moody's: Abbott view to negative

Moody's Investors Service said it revised Abbott Laboratories' rating outlook to negative from stable following the company's announcement that its board of directors approved a significant increase in its dividend.

Abbott's A1 senior unsecured and Prime-1 short-term ratings were affirmed.

Abbott will raise its dividend beginning in 2014, representing close to a 60% increase in gross payouts. This will mean that total dividends will increase from about $880 million in 2013 to an estimated $1.4 billion in 2014.

"Abbott's decision to substantially raise its dividend is outside of our expectations and reduces the company's ability to fund its U.S. cash needs without incremental debt," Moody's senior credit officer Diana Lee said in a news release.

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