The rating agency S&P has placed Johnson & Johnson (JNJ.US) on credit watch with a negative outlook, primarily due to the company's investment of nearly 15 billion USD to acquire the mental health drug developer Intra-Cellular Therapies.
S&P believes that this acquisition will increase Johnson & Johnson's adjusted leverage ratio to about 1.4 times, exceeding the downward trigger of 1 time for the S&P rating. Johnson & Johnson added that it expects the adjusted leverage ratio to drop to 1.1 times by the end of 2025 and below 1 time by the end of 2026.
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