Sun Pharma gets ratings boost from Moody's, S&P over ₹11.75-billion Organon & Co acquisition bid
S&P Global Ratings assigned a preliminary 'BBB+' long-term issuer credit rating, while Moody's Ratings assigned a 'Baa1' long-term issuer rating to the Indian pharmaceutical major
Rating agencies Moody's and S&P Global assigned investment-grade ratings to Sun Pharmaceutical Industries, India's largest pharmaceutical company, following its proposed $11.75 billion acquisition of US-based Organon & Co. S&P Global granted the company a long-term issuer credit rating of BBB+, while Moody's assigned a Baa1 rating.
Both agencies maintain a stable outlook for Sun Pharma. The acquisition is expected to close by March 2027, subject to regulatory approvals. S&P believes the merger will nearly double Sun Pharma's revenue base to approximately $1.3 trillion by FY28, with Organon contributing 40-45% of the group's EBITDA post-acquisition. The acquisition will strengthen Sun Pharma's scale, geographic reach, and growth platforms, particularly in women's health and biosimilars.
S&P estimates Sun Pharma's revenue will reach around $1.3 trillion by fiscal 2028, up from $645 billion in fiscal 2027 (excluding Organon). Organon's presence in markets like China and Korea will allow Sun Pharma to cross-sell its products, as the company currently has limited presence in these countries. Moody's noted that Sun Pharma has secured a $12 billion committed acquisition bridge loan from international banks, with the company holding approximately $3.6 billion in cash as of March 31, 2026.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
