Fitch eyes Perrigo for downgrade

Fitch Ratings said it placed Perrigo Co. plc's issuer default rating and its issuance ratings, including those issued by Perrigo Finance Unlimited Co., on rating watch negative.

The RWN reflects the expectation that Perrigo's acquisition of HRA Pharma for about $2.1 billion in cash will push leverage (total debt/EBITDA) above its current BBB- leverage rating sensitivity beyond 18-24 months, the agency said.

“While Fitch views the transaction as strategically constructive and consistent with Perrigo's strategy, it will not be sufficient to replace the EBITDA lost to the Perrigo Rx divestiture given the multiple and funding mix. Fitch expects to resolve the RWN around the time of the closing (which may be more than six months in the future) and will result in a one-notch downgrade,” the agency said in a press release.

© 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.