Teva debt risk mostly about future refinancing, says Wells Fargo

Wells Fargo analyst David Maris said he thinks it is a mistake to think the only relevant impact to Teva of a debt downgrade is an increase on the rates on its $3.4B of bank debt, saying the "bigger picture" issue is the $20B or more of debt he believes Teva will need to refinance over the next several years at potentially much higher rates. The analyst, who also believes R&D cuts boost near-term numbers but hurt Teva's longer-term prospects and notes that his recent industry interactions "clearly point to the negative pricing environment continuing," keeps an Underperform rating on Teva shares.

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