Moody's could upgrade Wyeth

Moody's Investors Service said it placed Wyeth's A3 long-term and Prime-2 short-term ratings on review for a possible upgrade.

"Two new FDA approvals and recent resolution of FDA manufacturing compliance issues prompt Moody's to consider upgrading Wyeth's credit ratings," Michael Levesque, Moody's senior vice president, said in an agency rating.

Under review are A3 senior unsecured notes, debentures, bank credit facility, industrial revenue bonds, pollution control bonds and Prime-2 commercial paper.

The review reflects several factors, the agency said: the company's solid operating performance driven by continued growth in core products; its combination of low patent expiration through 2009 and late-stage development pipeline; and reduced uncertainty surrounding the cost of the diet drug litigation.

The review will focus on the company's potential to expand cash flow, its ability to absorb litigation exposure, its response to patent expirations in 2010 (that affect a quarter of its revenue) and its capital structure objectives and debt policy.

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