LONDON, July 29 (Reuters) - GlaxoSmithKline, alreadyrocked by a bribery scandal in China, suffered a fresh setbackon Monday when Moody's Investors Service cut its credit outlookfor the British drugmaker on concerns about cash outflows.
Moody's said the reduction in the long-term A1 rating tonegative from stable was not triggered by the situation inChina, where analysts believe GSK may face fines followingallegations that up to 3 billion yuan ($489 million) wasfunnelled through travel agencies to facilitate bribes.
A company spokesman said GSK was "relaxed" about the move,which would not affect its ability to access capital markets.
GSK's CEO told Reuters in June that he had a low appetitefor further acquisitions and divestments would far exceed thecost of buying businesses as the company slims down ready for awave of its new medicines to reach the market.
Moody's said GSK's financial profile had been hurt by itsdebt-financed acquisition of Human Genome Sciences last year, aswell as legal settlements linked to past investigations and itspolicy of continuing to make large share buybacks.
Glaxosmithkline (GSK)