Teva Pharmaceutical Industries Ltd. secured a BB+ long‑term issuer credit rating from S&P Global Ratings, up from BB, with a stable outlook. The upgrade follows a sustained deleveraging program that brought adjusted leverage to 4.4× as of September 30, 2025 and is projected to fall below 4.25× in the next few quarters, bringing the company closer to investment‑grade status.
Moody’s reaffirmed Teva’s B1a rating and lifted its outlook to positive from stable, citing the company’s improving operating performance, disciplined capital allocation and robust liquidity. Moody’s forecasted leverage to decline toward 3.5× within 12–18 months, underscoring confidence in Teva’s debt‑management trajectory.
Teva’s Q3 2025 results reinforced the rating narrative. Revenue rose to $4.48 billion, beating the consensus of $4.35 billion, driven by a 33% surge in branded medicines revenue, particularly Austedo and Ajovy. Adjusted earnings per share of $0.78 surpassed the $0.67 estimate, a beat of $0.11, reflecting cost discipline and a favorable product mix that offset generics pricing pressure.
Chief Financial Officer Eli Kalif highlighted the company’s “Pivot to Growth” strategy, noting that disciplined cash‑flow management and targeted capital allocation have delivered tangible value. Kalif emphasized that the credit upgrades validate Teva’s focus on high‑margin specialty products while stabilizing its generics business, positioning the company for continued growth and eventual investment‑grade status.
The upgrades have already spurred a positive market reaction, with Teva’s shares reaching a new 52‑week high following the announcement. Analysts view the rating improvements as a signal of reduced borrowing risk and enhanced financial flexibility, which could lower future debt costs and support the company’s strategic initiatives. The company still faces headwinds from Medicare discounts on Austedo effective January 2027 and generics pricing competition, but the improved ratings provide a buffer as Teva navigates these challenges.
Looking ahead, Teva’s debt maturities—approximately $1.8 billion in October 2026 and $2.8 billion in May 2027—will be easier to refinance under the upgraded ratings. The company’s guidance for the full year remains robust, with revenue outlooks in the $16.8 billion–$17 billion range and adjusted earnings guidance of $2.55–$2.65 per share, reflecting confidence in sustained growth and continued deleveraging.
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