Hospira (HSP) Placed on CreditWatch Positive by S&P

Standard & Poor's Ratings Services today placed its ratings on Hospira Inc. (NYSE: HSP), including its 'BBB-' corporate credit rating, on CreditWatch with positive implications.

The CreditWatch placement follows Pfizer Inc.'s announcement that it intends to acquire Hospira in a $16 billion deal funded by a mix of cash and debt.

We believe Pfizer's proposed acquisition of Hospira strengthens Pfizer's already "excellent" business risk profile, as it adds Hospira's leading portfolio of specialty injectable generic and branded drugs, promising pipeline of biosimilars, as well as a leading hospital infusion pump franchise to Pfizer's portfolio. Despite the all cash and debt financing, the proposed acquisition price is well within the capacity of our 'AA' ratings on Pfizer.

We will resolve the CreditWatch placement on Hospira at the close of its acquisition by Pfizer, pending additional information on the debt at Hospira.

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