31, 2005). The repatriation resulted in a decrease in short-term and long-term investments held overseas as the cash was repatriated and an increase in short-term borrowings overseas used to fund the repatriation.

Investments

Our short-term and long-term investments consist primarily of high quality, liquid investment-grade available-for-sale debt securities. Our long-term investments include debt securities that totaled $906 million as of December 31, 2005, which have maturities ranging substantially from 1 to 10 years. Wherever possible, cash management is centralized and intercompany financing is used to provide working capital to our operations. Where local restrictions prevent intercompany financing, working capital needs are met through operating cash flows and/or external borrowings.

Long-Term Debt Issuance

In November 2005, Pfizer issued $1.0 billion of senior unsecured floating-rate notes at LIBOR, less a nominal amount, with an initial maturity of 13 months. The debt holders have the option to extend the term of the notes by one month, each month, during the five-year maximum term of the notes. In addition, the adjustment to LIBOR increases each December by a nominal amount. The notes are callable by us at par plus accrued interest to date every six months, with a notice not less than thirty days, but not more than sixty days. The LIBOR-based floating-rate

   In early April 2005, following the market withdrawal of Bextra and the FDA’s decision requiring new labeling for Celebrex, Moody’s placed our Aaa rating under review for possible downgrade.The review was completed in June 2005 when Moody’s removed Pfizer from review status and reaffirmed our Aaa rating. However, Moody’s maintained our rating outlook as negative.This reflects Moody’s overall negative rating outlook for the major pharmaceutical sector and, specifically, their concern that lower product sales, potentially unfavorable outcomes of patent litigation, or a shift towards a more aggressive financial profile could result in Pfizer’s financial metrics falling below those appropriate for a Aaa-rated company.

Our superior credit ratings are primarily based on our diversified product portfolio, our strong operating cash flow, our substantial financial assets, our strong late-stage product pipeline and on our desire to maintain a prudent financial profile. Our access to financing at favorable rates would be affected by a substantial downgrade in our credit ratings.

Debt Capacity

We have available lines of credit and revolving-credit agreements with a group of banks and other financial intermediaries. We maintain cash balances and short-term investments in excess of our commercial paper and other short-term borrowings. At December 31, 2005, we had access to $3.0 billion of lines of credit, of which $1.1 billion expire within one year. Of these lines of credit, $2.8 billion are unused, of which our lenders have committed to loan us $1.7 billion at our request. $1.5 billion of the unused lines of credit, which expire in 2010, may be used to support our commercial paper borrowings.

As of February 24, 2006, we had the ability to borrow approximately $1 billion by issuing