GSK: Moody's downgrades outlook after Tesaro deal

(CercleFinance.com) - Moody's Investors Service downgraded its outlook for GlaxoSmithKline, citing a slowdown in deleveraging after the company acquired the US biotech firm Tesaro.


The agency hence revised GSK's outlook from "stable" to "negative" following the drugmaker's announcement of its intention to acquire Tesaro for 5.1 billion dollars.

"While the acquisition allows for a solid strengthening of GSK's oncology franchise, we expect credit metrics to remain weak for a prolonged period of time," said Knut Slatten, an analyst at Moody's.

The rating agency has however maintained GlaxoSmithKline's "A2" long-term debt rating.

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