Fitch revises Teva view to stable

Fitch Ratings said it revised the outlook for Teva Pharmaceutical Industries Ltd. and Teva Pharmaceuticals USA, Inc. to stable from negative and affirmed their long-term issuer default ratings at BB- and their senior unsecured credit facility ratings at BB-/RR4.

The agency also affirmed the senior unsecured credit facility ratings and senior unsecured debt ratings of Teva's subsidiaries at BB-/RR4.

“The revision in outlook to stable primarily reflects Fitch's view that Teva's financial flexibility has improved with its recent sale of debt (including sustainability linked bonds), which helps to align expected FCF generation with contractual maturities of debt over the next several years. In addition, Fitch's revised forecast for Teva's litigation settlement and restructuring costs reflects the belief that Teva has the financial flexibility to absorb such costs over a multi-year period similar to preliminary agreements that U.S. drug wholesalers reached for opioid litigation and; therefore, it would expect any final settlements to be paid out over multiple years.

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