S&P downgrades Sirona

S&P said it lowered its ratings on Sirona Holdco (Seqens) and its senior secured loans to B- from B.

“Pharmaceutical group Sirona Holdco (Seqens) will likely report a 31%-36% decrease in S&P Global Ratings-adjusted EBITDA to €132 million-€142 million in 2023, versus 19% EBITDA growth in 2022, due to the normalization of the high prices of para-aminophenol and of margins, lower market demand for phenol and acetone, manufacturing disruptions in the U.S. and weakened demand in Israel due to the conflict with Gaza, as well as the company's ongoing litigation with Mithra Pharmaceuticals,” S&P said in a press release.

The agency said it forecasts Sirona's debt to EBITDA will stand at 8x-9.5x in 2023-2024 because of increases of €25 million-€35 million in S&P Global Ratings adjusted debt in 2023 and another €50 million-€65 million in 2024 to cover reverse factoring and capital expenditure.

The outlook is stable.

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