The rating action reflects our view of delayed deleveraging against our previous expectations.

The ratings continue to reflect Sanofi's improved positioning in growth sectors like rare diseases and immunology as well as management's credit-supportive financial policy.

The ratings reflect the company's leading position in a number of therapeutic areas as well as recent success with newly approved drugs contributing to a good credit metrics recovery in 2019, which Scope expects to continue.

The rating reflects Sanofi's leading positions in vaccines, anti-diabetics and rare diseases within a credit-supportive underlying industry as well as the strong recovery for credit metrics expected by rating agency.

The rating reflects our view of Sanofi's credit metrics' recovery to levels commensurate with the ratings following their temporary deterioration following the acquisitions of Bioverativ and Ablynx in the first half of 2018.

Scope believes that the recently announced USD 11.6 bn acquisition of US-based biotech company Bioverativ is not a challenge for Sanofi’s credit rating.

Scope’s first ratings for Sanofi S.A. are driven by the French group’s credit-supportive industry risk, strong competitive position and sustained track record of good credit metrics. Senior unsecured debt is rated AA.