"I do feel that the Triple 'A,' while it may not matter much to the markets, still means a lot to JNJ and that management would make an effort to preserve the ratings," said Carol Levenson, director of research at Gimme Credit, in emailed comments.
She said the company had both the financial means and the will to bolster its credit profile and reduce debt using its prodigious cash flows after the acquisition is closed. J&J produced US$19.8bn of free cash flow in 2024, according to its fourth-quarter earnings report.