"Moody's Investors Service downgraded Roche Holding AG's (RHHBY) long-term rating four notches, after the company completed its tender offer for the rest of Genentech Inc.'s (DNA) outstanding shares. Roche essentially secured the $46.8 billion deal on Thursday after a $95-a-share tender offer raised the company's stake to 93% from 56%, allowing it to force the holdouts to take its offer. The deal was financed largely with $39 billion in bond issuances, with the rest coming from cash, short-term notes and commercial paper. Though the ratings firm acknowledged the strategic rationale and synergies behind the transaction, Moody's said those factors don't make up for the substantial debt Roche racked up to pay for the transaction. Roche's previous rating was just one notch below the highly coveted Aaa level. Still, the outlook for the rating, which now sits at A2, is stable, reflecting an "excellent" business profile spearheaded by several blockbuster drugs." (Dow Jones Newswires)
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