Fitch Downgrades and Withdraws CFR's International Ratings

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has downgraded and withdrawn CFR Pharmaceuticals S.A.'s (CFR) Issuer Default Ratings (IDRs) and CFR International SpA's (CFRI) senior unsecured notes rating. In addition, Fitch has affirmed CFR's national scale ratings. A full list of rating actions follows at the end of this press release.

The downgrade of the international ratings follows the recent downgrade of CFR's parent, Abbott Laboratories (Abbott). The ratings are also being withdrawn as there is a de minimis amount of debt outstanding after Abbott Laboratories (Chile) Holdco (Dos) SpA, Abbott's subsidiary, purchased 98% of the senior unsecured notes issued by CFRI through a tender offer.

KEY RATING DRIVERS

Abbott Laboratories as ParentAbbott's subsidiary, Abbott Investments Luxembourg S.A.R.L., acquired close to 100% of CFR's publicly-held shares for approximately USD2.9 billion, plus the assumption of net debt of approximately $430 million, at the end of September 2014. Fitch downgraded Abbott's ratings to 'A' Outlook Stable from 'A+' Outlook Negative on May 18, 2015.

Fitch has downgraded and withdrawn the following ratings:

CFR Pharmaceuticals S.A.--Long-term IDR downgraded to 'A' from 'A+'; Outlook Stable;--Local currency long-term IDR downgraded to 'A' from 'A+'; Outlook Stable.

CFR International SpA--Notes due in 2022 downgraded to 'A' from 'A+'.

Fitch has affirmed and maintained the following ratings:

CFR Pharmaceuticals S.A.--National long-term rating affirmed at 'AAA(cl)'; Outlook Stable;--Series A, B and E affirmed at 'AAA(cl)'; Outlook Stable;--Series C and D (guaranteed by Abbott) affirmed at 'AAA(cl); Outlook Stable;--Bond programs No. 730 and 731 affirmed at 'AAA(cl); Outlook Stable;--National Equity Rating affirmed at 'Primera Clase Nivel 4(cl)'.

RATING SENSITIVITIESA downgrade of Abbott's ratings would likely result in a negative rating action on the national scale ratings. A positive rating action is not likely in the near term.

RATING ASSUMPTIONS--Improvement in sales and EBITDA margins over the next couple of years arising from acquisition by Abbott.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:--'Corporate Rating Methodology' (May 28, 2014).

Applicable Criteria and Related Research:Corporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkagehttp://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749393

Additional DisclosureSolicitation Statushttp://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=984998ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150519007217/en/

Fitch Ratings
Primary Analyst
Cristina Madero
Associate Director
+1-312-368-2080
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Monica Coeymans
Director
+56-2-2499-3314
or
Committee Chairperson
Joe Bormann, CFA
Managing Director
+1-312-368-3349
or
Media Relations
Alyssa Castelli, New York, +1 212-908-0540
[email protected]
Elizabeth Fogerty, New York, +1 212-908-0526
[email protected]

Source: Fitch Ratings

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