(Bloomberg) -- Johnson & Johnson, one of the highest-rated investment-grade companies, is at risk of losing its AAA status at S&P Global Ratings due to its purchase of Intra-Cellular Therapies Inc.

S&P placed the pharmaceutical company on credit watch negative Tuesday, according to a statement. That means it’s under active review to be downgraded, and could potentially see its rating cut in roughly the next 90 days. 

J&J’s pending acquisition of Intra-Cellular is expected to be funded by a mix of cash-on-hand and debt, which would increase the company’s leverage ratio. S&P also expects even more debt-funded mergers and acquisitions from the company, keeping leverage high, according to analyst Arthur Wong.

Meanwhile, Moody’s Ratings on Tuesday affirmed J&J’s current ratings and its stable outlook. Analysts cited the company’s “financial resources, including cash-on-hand of over $20 billion as well as very strong annual free cash-flow generation.”

J&J is one of the last remaining companies rated AAA, along with Microsoft Corp. Though far from its speculative-grade counterparts, a drop down in ratings would likely make it more expensive for J&J to borrow debt.

The New Brunswick, New Jersey-based company agreed to acquire Intra-Cellular, a company focused on treatments for central nervous system disorders, for about $14.6 billion on Monday. 

J&J is expected to close the transaction later this year, at which point S&P says it plans to resolve the credit watch listing.

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