Moody's rates Teva notes Ba2

Moody's Investors Service said it assigned Ba2 ratings to the planned euro- and dollar-denominated unsecured notes offering by Teva Pharmaceutical Finance Netherlands II BV and Teva Pharmaceutical Finance Netherlands III BV, respectively. There are no changes to Teva's other ratings, including the Ba2 corporate family rating.

The notes will have downstream guarantees from the parent Teva Pharmaceutical Industries Ltd.

“The bond coupon rates benefit from certain key performance indicator requirements tied to emission reductions and increasing healthcare access in "low-and-middle income countries." If successful, Moody's expects that Teva's upcoming debt maturities will be manageable to repay from cash and free cash flow through 2024. Teva generates more than $2 billion in free cash flow annually,” the agency said in a press release.

Teva will use the proceeds to refinance a portion of its debt maturities in 2022 and beyond. Proceeds will also be used to fund transaction fees and expenses and/or for general corporate purposes.

The outlook remains negative.

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