S&P slashes Covis Finco

S&P said it downgraded Covis Finco Sarl and its first-lien debt to CCC+ from B. The issuer is the parent of Covis Pharma. The agency also cut the second-lien loan rating to CCC- from +. The recovery ratings on the debt are unchanged.

“The downgrade reflects a meaningful weakening in EBITDA and free operating cash flow (FOCF) over the past few quarters following operational disruptions and the slower-than-expected European roll-out of Alvesco, Duaklir, and Bretaris (recently acquired from AstraZeneca).

“This translates into elevated risks to capital-structure sustainability, as Covis Pharma tries to bridge its performance gap in relation to its underlying business plan,” the agency said in a press release.

S&P said it does not see a material improvement in leverage from 10.5x-11x in 2022.

The outlook is stable.

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