Moody's Ratings upgraded Teva Pharmaceutical Industries' issuer rating to Baa3 from Ba1, assigning a stable outlook. This upgrade returns the company to investment-grade status.
The rating action reflects confidence in Teva's growth strategy and rising sales of branded drugs. An expanding product pipeline and consistent debt reduction efforts also contributed to the upgrade.
Moody's cited Teva's global scale and leadership in the generic pharmaceuticals market as key strengths. The agency expects the company to continue paying down debt over the next 12 to 18 months.
Future deleveraging will be supported by earnings growth and solid free cash flow generation. Teva's gross debt-to-EBITDA ratio was approximately 4.0x for the twelve months ending June 30, 2026.