Johnson & Johnson's (JNJ) shares were edging lower Tuesday after S&P Global Ratings said it placed nearly all of the company's ratings on creditwatch with negative implications following the drugmaker's $14.6 billion deal to acquire Intra-Cellular Therapies (ITCI).
The ratings agency said that the negative creditwatch reflects concerns that while the company has reduced its debt after each acquisition, its leverage may occasionally exceed 1.0 times, which the ratings agency views as inconsistent with the current 'AAA' rating.
S&P said it plans to resolve the creditwatch status after reviewing the company's full-year 2024 results, 2025 guidance, as well as more details about the transaction, and additional information on management's financial policies regarding future mergers and acquisitions. It also said it will assess the impact of the ongoing talcum powder litigation settlement on the company's adjusted leverage.
Price: 143.64, Change: -0.83, Percent Change: -0.57