Merck Financial Ratings, Stock Price Tumble
as Vioxx Issue Begins to Play Out

Three financial ratings firms have issued advisories on Merck & Co., Inc. in the wake of recent reports that the company's estimated legal liabilities stemming from its decision to withdraw Vioxx from the market could reach $18 billion.

In early November, Moody's Investor Service and Standard & Poor's lowered Merck's long-term debt rating, while Fitch Ratings lowered Merck's senior unsecured and bank loan ratings. All three companies cited lost revenue and operating risks stemming from the Vioxx withdrawal as reasons for lowering the ratings.

Prior to the company's decision to voluntarily withdraw Vioxx from worldwide markets on Sept. 30, …