India Pharma Outlook Team | Tuesday, 08 September 2026
Sun Pharma has secured a clear investment-grade rating boost as it advances its USD 11.75-billion bid for Organon.
Moody’s and S&P Global Ratings both assigned strong credit assessments to India’s largest pharmaceutical company after reviewing the proposed acquisition.
The ratings signal that the agencies view the deal as credit-supportive rather than a source of excessive risk.
With the transaction expected to close by March 2027, the dual endorsement strengthens Sun Pharma’s position as it prepares to nearly double its scale and expand into new therapeutic and geographic markets.
S&P Global Ratings assigned a preliminary ‘BBB+’ long-term issuer credit rating, while Moody’s Ratings assigned a ‘Baa1’ long-term issuer rating. Both agencies maintained a stable outlook.
The rating actions followed Sun Pharma’s binding offer, made in April 2026, to acquire a 100 per cent stake in Organon & Co for an enterprise value of USD 11.75 billion.
S&P estimates that the deal will almost double Sun Pharma’s revenue base to about Rs 1.3 trillion by fiscal 2028. Without Organon, the agency projects revenue of roughly Rs 645 billion in fiscal 2027. Organon is expected to contribute 40-45 per cent of the combined group’s EBITDA after the acquisition closes.
Kaustubh Chaubal, Senior Vice President at Moody’s Ratings, stated that the Organon acquisition will materially strengthen Sun’s scale, geographic reach and growth platforms in women’s health and biosimilars.
S&P added that the resulting operating scale will place Sun Pharma in the same league as peers such as Teva Pharmaceuticals and Viatris, which currently generate annual revenues of USD 14-17 billion.
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Organon maintains a meaningful presence in China and Korean markets where Sun Pharma currently has limited operations. S&P noted that this footprint will give Sun Pharma an immediate platform to cross-sell its existing products and accelerate growth in Asia.
The combination also deepens the company’s exposure to women’s health and biosimilars, two segments that offer higher growth potential than many traditional generic categories.
Moody’s highlighted that Sun Pharma has already secured a USD 12 billion committed acquisition bridge loan from a syndicate of international banks. As of 31 March 2026, the company held cash balances of approximately USD 3.6 billion. The combination of existing liquidity and pre-arranged financing reduces uncertainty around the funding of the large transaction and supports the agencies’ stable outlooks.
The dual investment-grade ratings confirm that Moody’s and S&P see the Organon acquisition as a transformative yet manageable step for Sun Pharma. The deal will expand revenue, diversify the product mix, and open new geographies, while the company’s balance-sheet strength and committed financing keep credit risk within acceptable bounds.
For India’s pharmaceutical sector, the endorsement underscores the growing ability of domestic leaders to execute large, complex cross-border transactions and still retain investment-grade credentials.
