Moody's rates Wyeth notes Baa1

Moody's Investors Service said it affirmed Wyeth's Baa1/Prime-2 ratings and assigned a Baa1 rating to Wyeth's new $1.5 billion senior note offering.

Ratings affirmed include Aa1 senior unsecured notes, debentures, bank credit facility, industrial revenue bonds and pollution control bonds, prospective Baa1 senior unsecured shelf rating, Prime-2 commercial paper and VMIG-2 pollution control bonds.

Ratings assigned include Baa1 senior unsecured notes of $500 million due 2036 and Baa1 senior unsecured notes of $1 billion due 2016. The outlook remains developing.

Wyeth's Baa1 rating continues to reflect its good scale and market position, relatively low product concentration risk and good growth rates in core products including Effexor and Prevnar, Moody's said.

Moody's said Wyeth's key credit risk continues to be the uncertain magnitude of remaining diet drug costs. Wyeth faces a very large number of matrix level claims through the National Settlement Trust, as well a very large number of intermediate and back-end opt out claims.

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