Moody’s lowers Galapagos, notes

Moody's Investors Service said it downgraded Galapagos Holding SA’s corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD and senior unsecured notes to Caa3 from Caa2.

The agency also downgraded Galapagos SA’s senior secured notes to B3 from B2.

The outlook remains negative.

"Moody's decision to downgrade Galapagos by one notch takes into account (1) the weak order backlog, which was 16.8% down year-over-year as per end of September, which contributed to (2) another downward revision of the company's public guidance together with the release of Q3 results," Oliver Giani, Moody's lead analyst for Galapagos, said in a news release.

"In addition, the announcement of a management change – new CEO appointed, CFO will leave the company as well, creates additional uncertainty."

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