NEW YORK Moody’s Investors Service announced Wednesday that it had upgraded the ratings of generic drug maker Teva from Baa1 to A3, making the Israeli company the first generic drug company to achieve an “A” rating.
“The upgrade of Teva reflects a favorable growth outlook, clearly articulated financial targets and the expectation that M&A can be financed with debt levels appropriate for an A3 rating,” Moody’s SVP Michael Levesque said in a statement.
Moody’s said that Teva had continued to exhibit “very strong” operating performance and that upcoming generic launches, the increasing penetration of generic drugs and cost synergies from its acquisition of Barr Labs would result in additional growth. Recently, Teva announced plans to have more than $30 billion in revenues by 2015. With $15.3 billion in sales in 2008, Teva was the only generics company to make IMS Health’s list of the top 15 drug makers as measured by sales that year.