Moody's boosts Galderma

Moody's Investors Service said it upgraded the corporate family rating of Sunshine Luxembourg VII Sarl (Galderma) to B2 from B3, the probability of default rating to B2-PD from B3-PD and its senior secured bank credit facilities to B1 from B2.

“Galderma's credit profile has strengthened since the LBO, as it has delivered its carve out and largely completed its transformation program, achieved strong organic growth, navigated a period of loss of exclusivity for major therapeutic drugs, and progressed its major pipeline opportunities. It is well placed for further growth in sales, margin expansion and improving cash flows. The company is expected to reduce its Moody's-adjusted leverage to well below 6x over the next 12-18 months, with all of the proceeds from its recent equity issuance expected to be applied to reduce leverage as well as to invest in continued organic growth,” the agency said in a press release.

The outlook remains stable.

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