We use cookies to improve your experience. By using BondbloX, you agree to our use of cookies.
Bond Market News
Teva Upgraded to IG-Status of BBB- by Fitch
May 18, 2026
Teva Pharmaceutical Industries (Teva) was upgraded to IG-status of BBB- from HY-status of BB+ by Fitch. The upgrade reflects Teva’s sustained debt reduction, growing financial flexibility, and a deliberate strategic shift toward a higher-margin portfolio of innovative drugs and biosimilars. Innovative revenue has grown from just 9% of total revenue in 2022 to over 20% in early 2026. This mix shift, combined with a $700mn cost savings program that is roughly two-thirds complete, is expected to improve EBITDA margins by ~200bp over the medium term. Generics still account for about 55% of revenues and remain cash-generative, though they continue to face pricing pressure. On the balance sheet, Teva has repaid more than $1.5bn of debt annually from 2023-25 and is expected to maintain this pace in 2026. This is set to bring leverage down to the mid-3.0x range by year-end. A potential divestiture of its Active Pharmaceutical Ingredients (API) division could accelerate this further, with net proceeds estimated to exceed $1bn. Free cash flow is expected to surpass $2bn annually over the medium term, supporting continued deleveraging, modest shareholder returns, and selective acquisitions. Near-term product launches are expected to further strengthen the growth and margin profile.
Teva’s dollar bonds traded stable. For instance, its 5.125% 2029s were at 100, yielding 5.12%
Go back to Latest bond Market News
Related Posts:
Sinopec Returns to the Dollar Bond Market for a Second Time in 2017
September 13, 2017
S&P Upgrades Yanlord by One Notch to ‘BB’
March 16, 2018
Our Awards
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.