Moody’s Cuts Chiron Debt Ratings

Chiron Corp., whose influenza vaccine shipments to the U.S. were blocked by British regulators, had ratings on $580 million in corporate debt cut Monday by Moody’s Investors Service.

Chiron’s senior unsecured debt was cut to Baa2 from Baa1, Moody’s said.

Chiron’s cash flow has eroded because of lost U.S. sales of its flu vaccine during the 2004-05 season, Moody’s said. Manufacturing problems at a plant in Liverpool, England, may hurt sales next year, and competitors also may enter the market, the ratings service said.

The announcement was made after U.S. markets closed. Shares of Emeryville, Calif.-based Chiron fell 23 cents to $31.51 on Nasdaq.

Separately, Chiron said it had mistakenly reported in a Securities and Exchange Commission filing that it had received a congressional committee subpoena for certain records relating to its flu vaccine.

Chiron spokeswoman Alison Marquiss said the House Committee on Energy and Commerce had requested the documents about the vaccine, called Fluvirin. But “it’s not a subpoena,” she said.

The documents are part of ongoing investigations after contamination problems at the company’s British vaccine plant wiped out about half the U.S. flu shot supply for the 2004-05 season and left U.S. officials scrambling for alternatives.

The SEC filing did not offer any details about the committee request, but Marquiss said Chiron was “cooperating fully.” She said the company had provided some records and would continue to provide others.

Bloomberg News and Reuters were used in compiling this report.