Moody’s changes Synlab view

Moody's Investors Service said it affirmed the Ba3 long-term corporate family rating and Ba3-PD probability of default rating of Synlab AG.

Moody's also affirmed the B1 ratings of the €500 million senior unsecured revolving credit facility and the €735 million senior unsecured term loan A both issued by Synlab.

Moody's affirmed the Ba2 rating of the guaranteed senior secured term loans issued by Synlab Bondco plc.

The outlook on both entities has been changed to stable from positive.

“Today's outlook change to stable from positive reflects Moody's expectation that Synlab's credit metrics will no longer meet our requirements for an upgrade to a Ba2 over the next 12-18 months,” the agency said in a news release.

“This is primarily due to the expected weakening of its earnings as a result of the steeper decline in Covid-19 testing revenues than Moody's had expected when the agency changed the outlook to positive back in April 2022 combined with higher operating costs owing to inflation.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.