MUMBAI (Thomson Financial) - Moody's Investors Service said it put the 'Aa1'
long-term issuer rating of Roche Holding A.G. on review for possible downgrade
after the pharma company said it would acquire all outstanding shares of
Genentech, Inc.
"Although this transaction will enable Roche to have full access to
Genentech's significant cash flows and derive a certain amount of synergies, the
effect on credit metrics will be significant," Moody's said.
The impact on Roche's financial profile would be substantial with credit
metrics on average weakening from the 'Aaa' category to the 'Ba' level
immediately after the transaction, Moody's estimated.
TFN.newsdesk@thomson.com
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