Fitch affirms Sanofi-Aventis

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

The outlook is stable.

The affirmation follows the agreement for Sanofi-Aventis to acquire Merck & Co. Inc.'s 50% interest in the companies' joint venture Merial for $4 billion in cash, according to the agency.

"Sanofi-Aventis' ratings have some headroom for acquisitions," Britta Holt, a director at Fitch, noted in a statement.

Sanofi-Aventis' ratings reflect its strong competitive position as the global No. 2 pharmaceutical company, the agency said, as well as the group's full drug development pipeline and solid product diversification.

Ratings are constrained by the upcoming expiry of the U.S. patent for Plavix in November 2011 and the resulting reduction in royalty payments from Bristol-Myers Squibb Co. (A+/stable), the agency noted.

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