| [May 19, 2015] |
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Fitch Downgrades and Withdraws CFR's International Ratings
Fitch Ratings has downgraded and withdrawn CFR Pharmaceuticals S.A.'s
(CFR) Issuer Default Ratings (IDRs) and CFR International SpA's (CFRI)
senior unsecured notes rating. In addition, Fitch has affirmed CFR's
national scale ratings. A full list of rating actions follows at the end
of this press release.
The downgrade of the international ratings follows the recent downgrade
of CFR's parent, Abbott Laboratories (Abbott). The ratings are also
being withdrawn as there is a de minimis amount of debt outstanding
after Abbott Laboratories (Chile) Holdco (Dos) SpA, Abbott's subsidiary,
purchased 98% of the senior unsecured notes issued by CFRI through a
tender offer.
KEY RATING DRIVERS
Abbott Laboratories as Parent
Abbott's subsidiary, Abbott
Investments Luxembourg S.A.R.L., acquired close to 100% of CFR's
publicly-held shares for approximately USD2.9 billion, plus the
assumption of net debt of approximately $430 million, at the end of
September 2014. Fitch downgraded Abbott's ratings to 'A' Outlook Stable
from 'A+' Outlook Negative on May 18, 2015.
Fitch has downgraded and withdrawn the following ratings:
CFR Pharmaceuticals S.A.
--Long-term IDR downgraded to 'A' from
'A+'; Outlook Stable;
--Local currency long-term IDR downgraded to
'A' from 'A+'; Outlook Stable.
CFR International SpA
--Notes due in 2022 downgraded to 'A' from
'A+'.
Fitch has affirmed and maintained the following ratings:
CFR Pharmaceuticals S.A.
--National long-term rating affirmed at
'AAA(cl)'; Outlook Stable;
--Series A, B and E affirmed at
'AAA(cl)'; Outlook Stable;
--Series C and D (guaranteed by Abbott)
affirmed at 'AAA(cl); Outlook Stable;
--Bond programs No. 730 and
731 affirmed at 'AAA(cl); Outlook Stable;
--National Equity Rating
affirmed at 'Primera (News - Alert) Clase Nivel 4(cl)'.
RATIN SENSITIVITIES
A downgrade of Abbott's ratings would likely
result in a negative rating action on the national scale ratings. A
positive rating action is not likely in the near term.
RATING ASSUMPTIONS
--Improvement in sales and EBITDA margins over
the next couple of years arising from acquisition by Abbott.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Corporate Rating
Methodology' (May 28, 2014).
Applicable Criteria and Related Research:
Corporate Rating
Methodology - Including Short-Term Ratings and Parent and Subsidiary
Linkage
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749393
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=984998
ALL
FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
WEBSITE.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150519007217/en/
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