Moody’s changes Galapagos to negative

Moody's Investors Service said it changed the outlook on all of the ratings pertaining to Galapagos Holdings SA and its subsidiary Galapagos SA to negative from stable.

The ratings were affirmed, including Galapagos Holding’s B2 corporate family rating and B2-PD probability of default rating and Caa1 senior unsecured note rating and Galapagos SA’s B1 senior secured note rating.

"The change in outlook primarily reflects Galapagos' elevated leverage and deteriorating liquidity at a time when earnings are under pressure," Scott Phillips, Moody's vice president, senior analyst and lead analyst for Galapagos, said in a news release.

"The shift in the business towards its project business division Enexio will strain margins while the timely execution of the order backlog will be challenging."

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