Exhibit 99.1
S&P Schering-Plough Ratings Lowered; Off Watch Neg
Source: Standard & Poor's CreditWire / Corporate Finance
Date: December 17, 2003
NEW YORK (Standard & Poor's) Dec. 17, 2003-Standard & Poor's Ratings Services
said today that it lowered its corporate credit and long-term debt ratings on
Schering-Plough Corp. to 'A' from 'A+'. The ratings were also removed from
CreditWatch, where they were placed Nov. 10, 2003, a reflection of Standard &
Poor's increasing doubt that the company could restore its business profile to
one consistent with an 'A+' rating.
The outlook is negative.
"The action reflects the steady erosion of Schering-Plough's earnings
prospects, namely the significant loss of market share for its key franchise,
the hepatitis C treatment PEG-Intron," said Standard & Poor's credit analyst
Arthur Wong. "The downgrade also reflects continued expected declines in
earnings and cash flows."
The still firmly investment-grade ratings on Kenilworth, N.J.-based
Schering-Plough reflect the company's strong position in the highly profitable
pharmaceutical business, given its diverse drug portfolio, the promise of the
recently launched cholesterol drug Zetia, and its very conservative financial
profile. These factors are partially offset by the weakening of PEG-Intron, the
company's leading franchise, as well as an expected continued decline in
earnings and cash flows, and continued struggles to comply with FDA
manufacturing requirements.
Despite the loss of sales of longtime mainstay allergy drug Claritin after its
U.S. patent expiration in late 2002, Schering-Plough continues to maintain a
solid and diverse portfolio that features major products PEG-Intron, Clarinex,
Remicade, Integrilin, and Zetia.
Complete ratings information is available to subscribers of RatingsDirect,
Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com
All ratings affected by this rating action can be found on Standard & Poor's
public Web site at www.standardandpoors.com; under Credit Ratings in the left
navigation bar, select Credit Ratings Actions.
Contact: Arthur Wong, New York (1) 212-438-7870
CUSIP: 806605 80660A 80660B
Copyright (c) 2003, Standard & Poor's Ratings Services
Copyright (c) 2003 Standard & Poor's
