Shares of Johnson & Johnson JNJ, +0.47% rose 0.4% in morning trading, in the wake of the U.S. Supreme Court’s denial of the request to review a Missouri court verdict regarding various talc cases against the consumer products and drug maker. As a result of the Supreme Court decision, J&J disclosed in an 8-K filing with the Securities and Exchange Commission late Tuesday that it will make a $2.5 billion payment, including interest, in June. Moody’s Investors Service said Wednesday that the payment will have “no impact” on J&J’s Aaa rating, the credit rating agency’s highest rating, at this time. The rating outlook remains negative. In comparison, Pfizer Inc.’s PFE, +0.79% and Eli Lilly & Co.’s LLY, +0.37% credit ratings at Moody’s are both A2, or five notches lower than J&J’s rating. J&J’s stock has gained 12.1% over the past 12 months, while the SPDR Health Care Select Sector ETF XLV, -0.08% has rallied 18.5% and the Dow Jones Industrial Average DJIA, +0.08% has climbed 34.6%.
View Article Origin Here
