Teva Pharmaceutical Industries has secured an investment-grade credit rating from Moody’s, marking a major step forward in the drugmaker’s financial turnaround and growth strategy.
Moody’s Ratings upgraded Teva’s corporate credit rating to Baa3 from Ba1, with a stable outlook. The upgrade reflects what Moody’s described as continued progress in Teva’s growth strategy, including innovative products, an expanding pipeline and further debt reduction backed by stronger earnings.
The ratings agency also pointed to Teva’s diversified revenue base, improving operating margins, solid free cash flow and ample cash reserves. Moody’s expects the company to continue reducing its debt over the next 12 to 18 months.
“Moody’s upgrade to investment grade marks a major milestone in Teva’s transformation journey and further validates the progress we're making through our Pivot to Growth strategy,” said Eli Kalif, Teva’s Chief Financial Officer.
“This recognition, together with Fitch’s upgrade in May, reflects years of disciplined execution, continued debt reduction and a stronger financial profile. It enhances Teva’s financial flexibility and access to a broader base of investors as we continue to invest in growth, advance innovation for patients and create long-term value for our stakeholders.”
The Moody’s upgrade follows Fitch Ratings’ upgrade of Teva in May 2026, giving the company investment-grade recognition from both major rating agencies and strengthening its position in credit markets.
The improved credit standing could also support Teva’s eligibility for inclusion in leading fixed-income indices, potentially broadening the pool of investors able to hold its debt.
The upgrade is another marker of Teva’s effort to shift from a debt-heavy financial profile toward growth driven by innovative medicines while maintaining its global generics business. The company has been pursuing its Pivot to Growth strategy to expand its innovative and biosimilar medicines pipeline, improve profitability and strengthen its balance sheet.
Teva said the strategy remains subject to risks, including competition, regulatory and litigation issues, its significant indebtedness and the ability to successfully develop and commercialize medicines and deliver expected cost savings.
