S&P Affirms Pfizer Debt Ratings

Following the July 15, 2002, announcement by drug giant Pfizer (PFE ) that it has signed a definitive agreement to acquire its Peapack, N.J.-based industry rival Pharmacia (PHA ), Standard & Poor's affirmed its 'AAA' corporate credit, bank loan, and senior unsecured debt ratings, as well as its 'A-1+' short-term corporate credit and commercial paper ratings for Pfizer. The proposed merger would be an equity-financed transaction valued at $60 billion. The outlook for Pfizer remains stable.

At the same time, the rating agency placed the long-term corporate credit and various debt ratings of Pharmacia and its affiliates, excluding Monsanto Co., on CreditWatch with positive implications. The 'A-1+' short-term corporate credit and commercial paper ratings on Pharmacia have been affirmed. Meanwhile, the single-'A' corporate credit and senior unsecured debt, as well as the 'A-1' short-term corporate credit and commercial paper ratings on Monsanto were also affirmed.