S&P Global Ratings Upgrades Teva to ‘BB+’ Amid Strong Execution of Pivot to Growth Strategy; Moody's Ratings Agency Revises Outlook to Positive

Rhea-AI Summary

Teva (NYSE: TEVA) received a ratings upgrade and outlook revisions on Dec 24, 2025: S&P raised the long-term rating to BB+ (from BB) with a stable outlook, while Moody's affirmed B1a and moved the outlook to positive from stable.

S&P cited adjusted leverage of 4.4x as of Sept 30, 2025 and expects leverage to drop below 4.25x in coming quarters; Moody's expects leverage toward 3.5x within 12–18 months. Both agencies pointed to deleveraging, returning revenue growth, branded-medicine momentum, biosimilar launches, and strong liquidity as drivers supporting higher ratings.

Positive

• S&P upgrade to BB+ from BB
• Moody's outlook revised to positive from stable
• Adjusted leverage at 4.4x (Sept 30, 2025) with near-term improvement
• Return to revenue growth after five years of declines

Negative

• Generics segment facing ongoing headwinds
• Leverage remains elevated at 4.4x despite improvement

News Market Reaction – TEVA

+0.63%

+0.63% Session close to close

In the Dec 24 session, TEVA gained 0.63%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights strengthened credit quality, with S&P upgrading Teva to BB+ and Moody’s...

Analysis

This announcement highlights strengthened credit quality, with S&P upgrading Teva to BB+ and Moody’s revising its outlook to positive while affirming B1a. Both agencies pointed to deleveraging, with leverage at 4.4x and expectations toward 3.5x, alongside a return to revenue growth. Investors may track future leverage metrics, progress toward investment-grade status, performance of branded and biosimilar franchises, and ongoing insider activity as key indicators of execution.

Key Figures

Adjusted leverage: 4.4x Leverage rating threshold: 4.25x Target leverage: 3.5x +5 more

8 metrics

Adjusted leverage 4.4x As of September 30, 2025 per S&P

Leverage rating threshold 4.25x Level S&P cited for higher rating

Target leverage 3.5x Moody’s expectation within 12–18 months

S&P rating BB+ (from BB) Long-term issuer credit rating, stable outlook

Moody’s rating B1a Affirmed, outlook revised to positive from stable

Revenue trend Return to growth After five years of revenue declines

Price vs 52-week high -0.13% Pre-news level vs 52-week high of 31.58

Daily price change 1.06% 24h price change before this article

Key Terms

issuer credit rating, deleveraging, liquidity profile, branded medicines, +2 more

6 terms

issuer credit rating financial

"has upgraded Teva’s long-term issuer credit rating to ‘BB+’"

An issuer credit rating is an independent grade assigned to a company or government that summarizes how likely it is to meet its debt obligations, like a credit score or report card for a borrower. Investors use it to judge risk: a higher rating means lower chance of default and usually lower borrowing costs, while a lower rating signals greater risk and can make bonds more expensive or volatile, affecting returns and portfolio decisions.

deleveraging financial

"underpinned by Teva’s consistent deleveraging trajectory"

Deleveraging is the process of a company reducing the amount of debt it carries relative to its assets or equity, either by paying down loans, selling assets, or raising fresh equity. For investors it matters because lower debt typically means less financial risk and steadier cash flow—like removing weight from a backpack to make a hike safer and easier—while it can also slow growth if borrowing had been funding expansion.

liquidity profile financial

"highlighted Teva’s financial discipline, business strength and liquidity profile"

A liquidity profile describes how easily and quickly a company or asset can be turned into cash without causing a big change in price, based on things like cash on hand, available credit, and how active the market is for its shares. Investors care because a stronger liquidity profile means the business can pay bills, fund growth, and survive shocks without forced selling or sharp price swings — like having cash in your wallet versus owning a house that takes time to sell.

branded medicines medical

"driven by robust performance in branded medicines and stabilization in generics"

Branded medicines are prescription drugs sold under a company’s name or trademark and typically protected by patents or exclusive rights, similar to a name‑brand product vs a store‑brand. They matter to investors because that protection lets the maker charge higher prices and earn bigger profits while exclusivity lasts, but sales can drop sharply when cheaper generic versions enter the market, affecting revenue and valuation.

biosimilar medical

"product launches across both branded and biosimilar portfolios"

A biosimilar is a medicine created to be highly similar to an existing complex drug made from living cells, matching its safety and effectiveness while allowing for small, natural variations. For investors, biosimilars matter because they introduce lower-cost competition when patents end, which can cut prices, shift market share, and change revenue forecasts for companies selling the original drugs, much like a generic version does for simpler chemical medicines.

investment-grade financial

"milestone in Teva’s journey toward achieving investment-grade status"

Investment-grade describes bonds or other debt judged by credit agencies to have relatively low risk of failing to make promised interest and principal payments; think of it as a lender's report card showing financial stability. It matters to investors because these securities usually pay lower yields but reduce the chance of loss, affect portfolio risk and credit exposure, and influence how cheaply an issuer can borrow—similar to choosing a reliable car with lower repair risk over a cheaper, uncertain one.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• The two updates underscore Teva’s strong execution of its Pivot to Growth strategy and commitment to financial discipline.
• Moody's affirmed Teva's B1a rating and revised Teva's outlook to positive from stable
• S&P upgraded Teva to BB+ from BB, with a stable outlook
  

TEL AVIV, Israel, Dec. 24, 2025 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today announced that S&P Global Ratings ("S&P") has upgraded Teva’s long-term issuer credit rating to ‘BB+’ from ‘BB’, with a stable outlook, and that Moody's Ratings Agency ("Moody's") affirmed Teva's B1a rating and revised Teva's outlook to positive from stable. These upgrades mark another significant milestone in Teva’s journey toward achieving investment-grade status.

The upgrades are underpinned by Teva’s consistent deleveraging trajectory, with S&P noting that adjusted leverage declined to 4.4x as of September 30, 2025, and is expected to fall below 4.25x in the coming quarters, meeting the threshold for the higher rating. The ratings agency also highlighted Teva’s financial discipline, business strength and liquidity profile, returning to revenue growth after five years of declines, driven by robust performance in branded medicines and stabilization in generics.

Moody's cited Teva's continued improvement in operating performance and disciplined financial policies focused on debt reduction. The agency highlighted strong momentum in Teva’s branded franchises and upcoming product launches across both branded and biosimilar portfolios, which are expected to offset headwinds in the generics segment. Moody’s also noted Teva’s robust liquidity position, supporting its ability to manage upcoming debt maturities. Moody's stated that these factors, combined with expectations for leverage to decline toward 3.5x within 12–18 months, underpin the positive outlook and potential for an upgrade.

Eli Kalif, Teva's Chief Financial Officer, commented: "This upgrade is a powerful testament to our strategic vision and disciplined execution, especially coming at the heels of multiple upgrades in recent months. By driving our Pivot to Growth strategy, prioritizing robust cash flow management, and rigorously allocating capital, we have demonstrated unwavering commitment to deleveraging and sustainable business growth. These results clearly show how our focused strategy is delivering tangible value for Teva and positioning us for continued success."

About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.

Teva Cautionary Note Regarding Forward Looking Statements

In addition to historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our financial guidance, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. These forward-looking statements include statements concerning our plans, strategies, objectives, future performance and financial and operating targets, and any other information that is not historical information. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; our ability to develop and commercialize additional pharmaceutical products; competition for our innovative medicines; our ability to achieve expected results from investments in our product pipeline; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, to sustain and focus our portfolio of generic medicines, and to execute on our organizational transformation and to achieve expected cost savings; and the effectiveness of our patents and other measures to protect our intellectual property rights; our significant indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments; our business and operations in general; compliance, regulatory and litigation matters; other financial and economic risks; and other factors discussed in this document, in our Quarterly Report on Form 10-Q for the third quarter of 2025 and in our Annual Report on Form 10-K for the year ended December 31, 2024, including in the sections captioned “Risk Factors” and “Forward-looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

Teva Media Inquiries                     TevaCommunicationsNorthAmerica@tevapharm.com 
Teva Investor Relations Inquiries  TevaIR@Tevapharm.com

FAQ

What rating change did S&P announce for Teva (TEVA) on Dec 24, 2025?

S&P upgraded Teva's long-term rating to BB+ from BB with a stable outlook.

What did Moody's do to Teva's (TEVA) credit outlook on Dec 24, 2025?

Moody's affirmed Teva's B1a rating and revised the outlook to positive from stable.

What leverage level did S&P report for Teva (TEVA) and what is the near-term expectation?

S&P reported adjusted leverage of 4.4x as of Sept 30, 2025 and expects it to fall below 4.25x in coming quarters.

How soon does Moody's expect Teva's (TEVA) leverage to reach ~3.5x?

Moody's expects leverage to decline toward 3.5x within 12–18 months.

What business factors supported the rating actions for Teva (TEVA)?

Agencies cited deleveraging, strong liquidity, branded-medicine momentum, biosimilar launches, and returning revenue growth.

Does the Dec 24, 2025 ratings news affect Teva's (TEVA) path to investment-grade?

Agencies framed the actions as milestones toward achieving investment-grade status, supported by continued deleveraging.