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Industry Report Card: U.S. Health Care Sep 02
Standard & Poors, Sep 2002
Abstract
Recent health care industry credit activity has taken on a decidedly negative tone, highlighted by actions on a number of pharmaceutical firms. There were three notable rating downgrades. Bristol-Myers Squibb's loss of its top-tier status, and Schering-Plough's downgrade within the 'AA' category, were unusual events for strong companies in a still-attractive industry. They underscore the uncertainty of high-stakes drug research, during a period when payers are increasingly demanding substantive value-added medical development in return for the high profit margins on treatments they purchase. Each company has been disappointed in the quest to successfully replace products coming off patent with innovations that are insulated from the cutthroat pricing associated with commodity generics. Elan's precipitous fall from investment grade status not only...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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