Sun Pharma Gets Ratings Boost From Moody's, S&P Over $11.75-Bn Organon & Co Acquisition Bid

Rating agencies Moody's and S&P assigned investment-grade ratings to Sun Pharmaceutical Industries -- India's largest pharmaceutical company -- over the proposed $11.75-billion acquisition of US-based Organon & Co.

S&P Global Ratings assigned a preliminary 'BBB+' long-term issuer credit rating, while Moody's Ratings assigned a 'Baa1' long-term issuer rating to the Indian pharmaceutical major. Both agencies have maintained a 'stable' outlook for the company.

Baa1 and BBB+ are investment-grade credit ratings that indicate adequate payment capacity with moderate credit risk.

The rating actions follow Sun Pharma's binding bid in April 2026 to acquire a 100 per cent stake in Organon for an enterprise value of $11.75 billion. The transaction is expected to close by March 2027, subject to regulatory approvals.

According to S&P, the acquisition will bolster Sun Pharma's business position, almost doubling its revenue base to about ₹1.3 trillion (around $14 billion) by FY28. Organon is expected to contribute 40-45 per cent of the group's EBITDA post-acquisition.

"The Organon acquisition will materially strengthen Sun's scale, geographic reach and growth platforms in women's health and biosimilars," said Kaustubh Chaubal, Senior Vice President at Moody's Ratings.

"The acquisition will bolster Sun Pharmaceutical's business position... We estimate Sun Pharmaceutical's revenue will increase to about ₹1.3 trillion (about $14 billion) in fiscal 2028, from our estimate of ₹645 billion (about $7 billion) in fiscal 2027 (ex-Organon)," S&P said in a release.

"In our view, this operating scale is comparable to peers Teva Pharmaceuticals Ltd. (BBB-/Stable/--) and Viatris Inc. (BB+/Stable/B), which have annual revenues of $14 billion-$17 billion," it said.

"Organon's presence in markets such as China and Korea offer Sun Pharmaceutical an opportunity to cross-sell its products; it currently has limited presence in the two countries," &SP said.

Moody's noted that Sun Pharma has secured a $12 billion committed acquisition bridge loan from a syndicate of international banks. As of March 31, 2026, the company held cash balances of approximately $3.6 billion.