S&P Upgrades Teva Credit Rating to Investment Grade BBB- on Debt Reduction
S&P Global Ratings upgraded Teva's long-term credit rating to investment grade BBB- with a stable outlook. This is Teva's third upgrade in recent months, following similar moves by Fitch and Moody's.
Israeli pharmaceutical giant Teva has reached a major financial milestone. The company announced that S&P Global Ratings has upgraded its long-term issuer credit rating to investment grade BBB- from BB+, with a stable outlook.
This marks Teva's third rating upgrade in just a few months, following recent upgrades by major rating agencies Fitch and Moody's. With this latest upgrade, Teva now holds an investment-grade credit rating from all three major global rating agencies.
Pivot to Growth Strategy
Teva views the upgrade as a strong vote of confidence in its multi-year turnaround efforts, specifically its focus on improving business performance, reducing debt, and strengthening its financial position.
Eli Kalif, Teva's Executive Vice President and Chief Financial Officer, commented on the upgrade:
"Three rating upgrades within a few months reflect the successful execution of our 'Pivot to Growth' strategy, and the significant progress we have made in reducing debt and strengthening Teva's financial profile."
Eli Kalif added that this milestone enhances Teva's financial flexibility, enabling the company to continue investing in growth and driving long-term value creation.
S&P Analysis and Outlook
In its analysis, S&P Global Ratings highlighted Teva's potential for sustainable growth. The rating agency pointed to the strong performance of its key products, stability in its generics business, and a promising pipeline of innovative medicines in advanced stages of development.
The upgrade represents a major turning point for Teva after a prolonged period focused on deleveraging and balance sheet stabilization. Achieving investment-grade status across all three major rating agencies provides Teva with improved financial standing and greater flexibility for its future business operations.
