Drug Company Improves Credit Rating with Strong Sales

Increased-sales-can-help-a-company-s-credit-rating-jpgDrug and medical device company Allergan recently saw a boost in its credit ratings on the back of its strong 2010 sales.

Fitch Ratings boosted the company’s unsecured debt and bank loan rating from an “A-” to an “A”, according to BusinessWeek. Analysts at Fitch said that as economies recovered around the globe, Allergan’s sales increased, boosting its revenue 9.2 percent in 2010.

While it’s no mystery that increased sales will improve a company’s financial situation, it is always important to keep credit ratings in mind. Nowadays, a good amount of credit decisions are being made at higher levels, which means that one’s personal relationships with a local financial institution may not carry as much weight as they once did.

In order to combat this trend, companies should concentrate on improving their financial situation to ensure that they have access to more credit. This can take many forms, but one of the most straightforward is by increasing sales, which can often be accomplished by focusing on sales training and hiring strong salespeople.

As the case of Allergan shows, strong sales can result in improved credit ratings.