Moody’s trims Galapagos Holding

Moody's Investors Service said it downgraded to Caa3 from Caa1 the corporate family rating and to Ca-PD from Caa1-PD the probability of default rating of Galapagos Holding SA.

Moody's also downgraded to C from Caa3 the rating pertaining to the senior unsecured notes of Galapagos and to Caa2 from B3 the rating pertaining to the senior secured notes issued by Galapagos SA, a subsidiary of Galapagos.

The outlook remains negative.

“Moody's decision to take this rating action was triggered by the announcement made by Galapagos SA on June 7, 2019 related to a proposed balance sheet restructuring transaction,” Oliver Giani, Moody's lead analyst for Galapagos, said in a news release.

“The announcement clearly states that Galapagos intents not to pay the next interest payments when due on June 15, 2019, which would lead under Moody's definition to an interest payment default on July 15, when the 30 days grace period lapses.”

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