Fitch rates Teva loan BB

Fitch Ratings said it assigned a BB rating to the senior unsecured revolving credit agreement among Teva Pharmaceuticals Industries Ltd., Teva Pharmaceuticals USA, Inc., Teva Pharmaceutical Finance Netherlands II BV and Teva Pharmacuetical Finance Netherlands III BV

Teva's $3 billion senior unsecured revolving credit agreement was terminated, so Fitch said it withdrew the rating on it.

Fitch said it does not expect a material change in total debt balances to result as a net effect of this issuance.

The agency said it expects Teva's EBITDA will remain flat or trend lower compared with the level in 2018 because of price erosion challenging its generic medicines business and increased competition related to its specialty medicines business.

Even though Teva has a number of levers to reduce its debt-to-EBITDA ratio, including reducing costs, paying debt from free cash flow and selling assets, Fitch said it estimates that gross leverage may remain higher than 5x through 2020, Fitch added.

The agency said it does believe Teva will be able to meet its obligations through 2020.

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