Fitch affirms Sanofi-Aventis

Fitch Ratings said it affirmed Sanofi-Aventis SA's senior unsecured and issuer default ratings at AA- and its short-term rating at F1+.

The outlook remains stable.

Fitch said the ratings are supported by Sanofi-Aventis' good market positions in the global pharmaceuticals market, its full product pipeline as well as the small percentage of its sales that are at risk from patent expiry. The ratings are further enhanced by the group's above-average product diversification and its de-leveraging strategy.

Conversely, the ratings are constrained by Sanofi-Aventis' under-representation in the U.S. market and the heavily debt-financed acquisition of Aventis in August 2004. Fitch also noted that the company's profitability might be negatively affected by reduced royalty income due to the launch of a generic Plavix.

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