S&P revises Phoenix Pharmahandel view to negative

S&P said it revised to negative from stable its outlook on Phoenix Pharmahandel GmbH & Co. KG and affirmed the BB+ long-term issuer credit rating on the company.

At the same time, S&P affirmed its BB+ issue rating on Phoenix's €1.25 billion credit facility and two senior unsecured notes of €300 million and €200 million (outstanding). The recovery rating on debt remains 4, indicating an expectation of average (30%-50%; rounded estimate 40%) recovery prospects in the event of a payment default.

“The outlook revision reflects our view of Phoenix's operational challenges as a result of difficult market conditions, especially in the U.K., Germany, and France,” S&P said in a news release.

“Furthermore, we anticipate that a sizable portion of Phoenix's operating cash flow will continue to be tied up in working capital because of inventory requirements supporting growth, customer service requirements, and stricter payment conditions that are increasingly prevalent in the market.”

© 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.