Moody ’s has downgraded GlaxoSmithKline ( GSK ) following the company ’s $ 5.1bn takeover of it . The credit rating agency changed the company ’s outlook to negative because it will take longer to reduce its debt than expected and it will be left with weaker credit for a prolonged period . GSK ’s use of cash for the acquisition will put strain on its cash flow in coming years too , although Moody ’s highlighted the deal ’s strategic sense . Paul Jeng GSK disputed the analysis , saying that Tesaro had damaged its cancer franchise . It has also divested several consumer healthcare nutrition products to Unilever , generating about $ 3.1bn .
Moody ’s has downgraded GlaxoSmithKline ( GSK ) following the company ’s $ 5.1bn takeover of it . The credit rating agency changed the company ’s outlook to negative because it will take longer to reduce its debt than expected and it will be left with weaker credit for a prolonged period . GSK ’s use of cash for the acquisition will put strain on its cash flow in coming years too , although Moody ’s highlighted the deal ’s strategic sense . GSK disputed the analysis , saying that Tesaro had damaged its cancer franchise . It has also divested several consumer healthcare nutrition products to Unilever , generating about $ 3.1bn .