S&P cuts Galapagos Holding, debt

S&P said it lowered its long-term corporate credit rating on Galapagos Holding SA to B- from B.

The outlook is stable.

At the same time, the agency downgraded the following ratings on the group's debt:

• The issue rating on the super senior secured facilities, comprising a €75 million revolving credit facility and a €400 million guarantee facility, to B+ from BB-. The 1 recovery rating remains unchanged;

• The issue rating on the senior secured notes to B- from B. The recovery rating remains at 4, with recovery prospects in the higher half of the 30%-50% range; and

• The issue rating on the senior unsecured notes to CCC from CCC+. The recovery rating is 6, reflecting expectations of negligible (0%-10%) recovery.

S&P said the downgrade reflects its view that recent sluggish performance points to deterioration in Galapagos' business risk profile, and that its credit ratios will remain weak for the next 12 to 18 months.

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