Daiichi Sankyo has solid chance to pare debt, reinvest on Sun stake sale, Moody's says

The sale of Daiichi Sankyo's 9% stake in India's Sun Pharmaceutical Industries for about $3.2 billion paves the way for the Japanese company to drastically trim its debt holdings and also invest, according to a note from Moody's Investors Service. The sale completed on April 21 could allow Daiichi to repay at least $1 billion of its debt to reduce the company's adjusted debt to operating earnings to 1.5 times from 2.2 times currently, improving its credit profile significantly, the rating firm said.