S&P lowers Takeda

S&P said it lowered by the long-term issuer credit and senior unsecured debt ratings on Takeda Pharmaceutical Co. Ltd. to one notch to 'BBB+' from 'A-'

The agency also said it also affirmed the A-2 short-term issuer credit rating on Takeda.

S&P said it removed all of the ratings from CreditWatch with negative implications.

The outlook is negative.

S&P said it placed the ratings on CreditWatch with negative implications in May 2018, following news of Takeda's plan to acquire Shire plc.

The removal from CreditWatch follows the completion of Takeda's acquisition of Shire, the agency said.

The downgrades reflect a view that the increased debt resulting from the acquisition will materially worsen key financial ratios for Takeda, S&P said.

The agency said it believes these ratios are unlikely to recover swiftly, even when taking into account business benefits from the acquisition, cost reductions and asset sales.

S&P also said it raised the long-term issuer credit rating on Shire two notches to BBB+ from BBB- and the short-term issuer credit rating one notch to A-2 from A-3 and removed the ratings from CreditWatch with positive implications.

The agency said it also raised the senior unsecured debt ratings to BBB+ on the notes guaranteed by Shire and removed the ratings from CreditWatch.

The acquisition of Shire will bolster Takeda's product portfolio and enhance its late-stage development pipeline, which had been insufficient, S&P said.

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