1. S&P upgraded Teva’s rating to BB+, reflecting financial stability. 2. Moody's revised Teva's outlook to positive due to improved performance. 3. Adjusted leverage is declining, potentially reaching 3.5x in 12-18 months. 4. Teva's Pivot to Growth strategy shows strong momentum in branded medicines. 5. Plans for upcoming product launches support financial discipline and liquidity.
FAQ
Why Bullish?
The upgrades from S&P and Moody's suggest increasing investor confidence. Historical trends show similar ratings upgrades often correlate with stock price increases.
How important is it?
The article significantly highlights Teva’s improved credit ratings, which influence investor sentiment and stock performance. As ratings improve, access to capital and investor interest typically rise, enhancing stock attractiveness.
Why Short Term?
Immediate impacts are expected as the market reacts to rating upgrades. Historically, pricing adjustments occur quickly following positive credit news.
S&P Global Ratings Upgrades Teva to ‘BB+' Following Successful Growth Strategy Execution
TEL AVIV, Israel, December 24, 2025 (GLOBE NEWSWIRE) — Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has received significant upgrades from two prominent ratings agencies, further solidifying its path toward achieving investment-grade status. S&P Global Ratings raised Teva’s long-term issuer credit rating to BB+ from BB, with a stable outlook, while Moody's Ratings Agency affirmed Teva's B1a rating and improved its outlook to positive from stable.
Key Ratings Upgrades from S&P and Moody's
The recent ratings upgrades are a testament to Teva's successful execution of its Pivot to Growth strategy and its commitment to financial prudence. Key highlights of the upgrades include:
- S&P noted a decline in adjusted leverage to 4.4x as of September 30, 2025, with expectations to fall below 4.25x in the upcoming quarters.
- The favorable outlook reflects improved revenue growth after five consecutive years of decline.
- Robust performance in Teva's branded medicines sector and stabilization in generics contributed significantly to this success.
Moody's Assessment of Teva’s Financial Health
Moody's also recognized Teva's ongoing improvements in operational performance, particularly emphasizing its disciplined financial policies geared towards debt reduction. Key factors noted by Moody's include:
- Strong momentum within Teva's branded portfolios.
- Upcoming product launches in both branded and biosimilar segments that are expected to mitigate challenges faced in generics.
- A robust liquidity position that will aid in managing impending debt maturities.
- Projected leverage reduction towards 3.5x within the next 12 to 18 months, supporting the positive outlook.
Insights from Teva’s CFO
Eli Kalif, Teva's Chief Financial Officer, commented, “This upgrade is a powerful testament to our strategic vision and disciplined execution, especially coming at the heels of multiple upgrades in recent months. By driving our Pivot to Growth strategy, prioritizing robust cash flow management, and rigorously allocating capital, we have demonstrated our commitment to deleveraging and sustainable business growth.”
About Teva Pharmaceutical Industries Ltd.
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is evolving into a leading innovative biopharmaceutical company backed by a strong generics business. With over 120 years of experience, Teva remains dedicated to bettering health through innovation in neuroscience, immunology, and the delivery of complex generic medicines and biosimilars worldwide.
Cautionary Note Regarding Forward-Looking Statements
This announcement may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed. Factors affecting these outcomes include competition, the successful execution of Teva's strategies, and overall market conditions.