Fitch: Novartis view to stable

Fitch Ratings said it revised Novartis AG's outlook to stable from negative and affirmed its long-term issuer default rating and senior unsecured rating at AA and short-term issuer default rating at F1+.

The outlook revision follows the completion of the Alcon merger in April 2011 and progress in deleveraging, Fitch said.

The ratings are supported by its solid competitive position in the global pharmaceuticals industry and its strong research and development, as evidenced by its product portfolio and pipeline, the agency said, and good geographical diversification.

Negative rating factors include its significant presence in non-branded pharmaceuticals businesses, where the free cash flow margin is lower than in pharmaceuticals, Fitch said.

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