Moody's ups Schering-Plough view to positive

Moody's Investors Service said it revised the outlook for Schering-Plough Corp. to positive from stable and affirmed the company's Baa1 long-term senior unsecured rating and Prime-2 short-term debt rating.

The agency said the revised outlook reflects Schering-Plough's stronger operating performance driven by growth in Vytorin, Zetia, Remicade, Temodar and PEG-Intron; steady increases in cash flow to debt ratios, now in the A and Aa ranges; and an improvement in the company's litigation profile due to the recent agreement to settle a sales, marketing and clinical practices investigation by the U.S. Attorney's Office for the District of Massachusetts for $435 million.

The ratings are further supported by the company's low exposure to scheduled patent expirations and patent challenges and its very strong cash coverage of debt, Moody's said.

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