Global biopharma powerhouse Teva Pharmaceutical Industries has moved a step closer to regaining investment-grade status after two major credit agencies upgraded their view of the company, citing sharp progress in debt reduction, improving performance and renewed growth momentum.

 

S&P Global Ratings raised Teva’s long-term issuer credit rating to BB+ from BB and assigned a stable outlook, while Moody’s Ratings affirmed the company’s Ba1 rating and revised its outlook to positive from stable. The actions reflect growing confidence in Teva’s financial turnaround after years of balance-sheet pressure.

 

S&P pointed to Teva’s steady deleveraging, noting adjusted leverage fell to 4.4x as of Sept. 30, 2025, and is expected to drop below 4.25x in the coming quarters — the threshold for the higher rating. The agency also highlighted Teva’s disciplined financial management, solid liquidity and return to revenue growth after five consecutive years of decline, driven by strong branded-medicine performance and stabilization in generics.

 

Moody’s echoed that assessment, citing continued improvement in operating performance and a sustained focus on debt reduction. The agency highlighted momentum in Teva’s branded franchises and upcoming launches across branded and biosimilar portfolios, which are expected to help offset ongoing pressure in generics. 

 

Moody’s also underscored Teva’s strong liquidity position and said leverage trending toward 3.5x over the next 12 to 18 months supports the positive outlook and potential for a future upgrade.

 

Eli Kalif, Teva’s Chief Financial Officer, said the latest actions validate the company’s strategy:

"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."

 

The upgrades mark another milestone in Teva’s multi-year effort to strengthen its balance sheet and restore investor confidence, bringing the company within striking distance of investment-grade credit ratings.