Takeda Downgrade Looms After Shareholders Approve Shire Deal

  • Moody’s, S&P likely to cut rating to lower investment grade
  • Takeda may be able to improve credit grade in mid-term: NLI
Photographer: Kiyoshi Ota/Bloomberg
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Takeda Pharmaceutical Co. shareholders’ approval of the $62 billion acquisition of Shire Plc is good news for its bosses’ ambitions to build a global drug giant -- but bad news for its credit ratings.

The backing of what will be the largest-ever overseas purchase by a Japanese company paves the way for possible downgrades to the lowest tiers before junk ratings at both S&P Global Ratings and Moody’s Investors Service. The changes could come within about a month.