S&P ups Wyeth outlook to stable

Standard & Poor's said it revised Wyeth's outlook to stable from negative and affirmed the company's' A long-term and A-1 short-term corporate credit ratings, A senior unsecured debt and bank loan ratings and A-1 commercial paper rating.

S&P said the outlook change reflects Wyeth's strengthening business risk profile, founded on the realized promise of its maturing portfolio and a still-strong research pipeline. This increases the agency's confidence that the company will be able to cope with its long-running diet-drug litigation capably for at least the next couple of years.

The strong investment-grade ratings on Wyeth reflect the company's diverse portfolio of high-margin pharmaceuticals, limited exposure to drug patent expirations over the next several years, a near-term product pipeline that has several promising prospects and the company's strong cash-generating capability, the agency said.

These factors are partially offset by the continued uncertainty regarding ultimate resolution of Wyeth's ongoing diet-drug litigation, which S&P said could result in substantial additional charges to the company.

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