• Commercial paper programme - Rs. 45 crore
  Rating : P1+
• Commercial paper programme - Rs. 20 crore
  Rating : P1+
• Fixed deposit programme
  Rating : FAAA

CRISIL has ascertained that the credit quality of Glaxo India Ltd. (Glaxo) and Burroughs Wellcome India Ltd. (Burroughs Wellcome) will not undergo a change on eventual merger with Smithkline Beecham Pharmaceuticals India Ltd. and Smithkline Consumer Healthcare Ltd.

Glaxo has outstanding CRISIL ratings of ‘FAAA’ (pronounced ‘F-triple-A’) assigned to the fixed deposit programme and ‘P1+’ (pronounced P one plus) assigned to the Rs. 450 million commercial paper programme. Burroughs Wellcome has an outstanding CRISIL rating of 'P1+' (pronounced P one plus) for the Rs. 200 million commercial paper programme.

The merger with Smithkline companies has been prompted by the world-wide merger of the parent companies. In the Indian market, this will help in creating a stronger business entity with the two companies having complimentary products, and improving coverage. While the actual merger may take time, the companies are likely to operate with a common strategic business plan once the modalities have been worked out. This has been demonstrated in the case of Glaxo and Burroughs Wellcome, which exist as two different entities in the domestic market, but are integrated on the manufacturing, marketing and distribution fronts.

The financial profile of the merged entity with larger size and a strong cash position will result in a superior ability to service debt obligations.