Politics · India Bureau
Moody's, S&P award investment-grade ratings to Sun Pharma for Organon deal
Rating agencies have assigned investment-grade credit ratings to Sun Pharmaceutical Industries following its proposed $11.75-billion acquisition of US pharmaceutical firm Organon & Co, signaling confidence in the Indian drugmaker's financial capacity.
LSN India ·
S&P Global Ratings and Moody's Ratings have issued preliminary investment-grade ratings to India's largest pharmaceutical company in connection with its binding bid to acquire Organon & Co. S&P assigned a 'BBB+' long-term issuer credit rating, while Moody's issued a 'Baa1' rating, with both agencies maintaining a stable outlook for Sun Pharma. These ratings indicate adequate payment capacity with moderate credit risk.
Sun Pharma's acquisition of Organon, announced in April 2026, values the US-based pharmaceutical company at an enterprise value of $11.75 billion. The transaction, subject to regulatory approvals, is expected to close by March 2027 and represents one of the largest overseas acquisitions by an Indian pharmaceutical company.
The deal will significantly expand Sun Pharma's footprint in the global pharmaceutical market. According to S&P's assessment, the acquisition will strengthen the company's business position and nearly double its revenue base to approximately Rs 1.3 trillion, or around $14 billion. This expansion is expected to enhance Sun Pharma's market competitiveness and geographic diversification across key pharmaceutical markets.