S&P: Gilead Sciences Inc.'s Senior Unsecured Note Issuance Rated 'A'
Our corporate credit rating on Gilead is 'A' with a stable outlook.
The ratings on Gilead reflects the company's leading position in the HCV and HIV treatment categories, its successful and productive research and development (R&D) program, and strong profitability, offset by its narrow therapeutic focus and significant product concentration. Strong sales and cash flows have enabled the company to maintain very strong credit measures, with debt leverage less than 1.5x, which we expect to continue to decline and annual free cash flows of at least $15 billion a year. Along with generally conservative financial policies, we believe that Gilead will continue to maintain its very conservative financial profile, even when considering the possibility of significant share repurchase or acquisition activity.
For the corporate credit rating rationale on Gilead, see the research update published on Jan. 13, 2016.