GSK sale of Aspen stake a 'credit positive' move, says Moody's

Rating agency Moody's has described GlaxoSmithKline's decision to sell a 6.2% stake in Aspen Pharmacare as "credit positive".

On 13 March, the pharmaceutical giant sold half of its 12.4% stake in South Africa-based Aspen Pharmacare Holdings for £574m, in what Moody's described as a "credit-positive shift" for the group, which had been heavily focused on shareholder remuneration.

"The transaction increases the group’s ability to invest in its existing businesses," analysts at Moody's said in a note, indicating that the transaction will have only a minor effect on credit metrics.

"The shift, albeit subtle, toward an increased focus on creditor-friendly financial policies after two to three years of material shareholder distribution is significant."

Following the sale, GSK, which will still retain a 6.2% stake in Aspen, said it was committed not to dispose of any additional shares in the company for three months, adding that proceeds will be used for general corporate purposes and will not be directly distributed to its shareholders.

GSK shares were up 0.04% to 1,624.12p at 12:01 on Thursday.