Sun Pharmaceutical Industries Limited has been assigned international issuer credit ratings by Moody’s Ratings and S&P Global Ratings. Moody’s assigned a ‘Baa1’ rating with a stable outlook, while S&P Global Ratings assigned a preliminary ‘BBB+’ rating with a stable outlook. These ratings reflect the company’s strong business and financial profile, particularly in light of its proposed acquisition of Organon & Co.
Sun Pharma Secures Key International Credit Ratings
Sun Pharmaceutical Industries Limited (Sun Pharma) has announced that it has been assigned international issuer credit ratings by two leading rating agencies: Moody’s Ratings (“Moody’s”) and S&P Global Ratings (“S&P Global”). These ratings, communicated through respective press releases dated September 8, 2026, signify a strong endorsement of the company’s financial health and strategic direction.
Moody’s Assigns ‘Baa1’ Rating
Moody’s Ratings has assigned Sun Pharma a long-term issuer rating of ‘Baa1’ with a stable outlook. According to Moody’s, the ‘Baa1’ rating reflects Sun Pharma’s robust global pharmaceutical franchise, leading market position in India, diversified geographic and product base, growing innovative medicines portfolio, strong profitability, and consistent free cash flow generation. The rating also incorporates the proposed acquisition of Organon & Co., which is expected to materially strengthen Sun Pharma’s scale and geographic reach. Moody’s anticipates that Sun Pharma will maintain a conservative financial profile, with leverage expected to improve significantly post-acquisition.
S&P Global Rates ‘BBB+’
S&P Global Ratings has assigned a preliminary long-term issuer credit rating of ‘BBB+’ to Sun Pharmaceutical, also with a stable outlook. S&P’s rating takes into account Sun Pharma’s proposed acquisition of Organon & Co. and the pro forma capital structure. The stable outlook reflects S&P’s expectation that Sun Pharma will achieve a debt-to-EBITDA ratio of approximately 1.5x within 24 months after the acquisition. S&P highlights that the acquisition will bolster Sun Pharma’s business position, nearly doubling its revenue and earnings base, and enhance its therapeutic and geographic diversity.
Strategic Implications of Ratings
Both ratings are considered investment-grade and are above the current sovereign rating of India. This reflects the strength of Sun Pharma’s business and financial profile. The ratings are expected to support the company’s ongoing strategic initiatives, including the significant acquisition of Organon & Co., which is anticipated to close in the first quarter of 2027. The agencies noted that the ratings take into account the expected synergies and integration of Organon, as well as Sun Pharma’s strong track record in managing acquisitions and maintaining a conservative financial policy.
Source: BSE
