Fitch ups Galderma to investment grade

Fitch Ratings said it upgraded Sunshine Luxembourg VII Sarl's (Galderma Pharma SA) long-term issuer default rating to BBB- from B and removed it from rating watch positive. The outlook is stable.

The agency said it subsequently withdrew all its ratings for Galderma.

The company used its IPO proceeds to pay down about $5 billion to refinance the remaining capital structure, with Fitch-calculated EBITDA leverage declining toward 3x through 2024 from an estimated 5.4x at end-2023.

“The BBB- IDR reflects Galderma's strong market positions in the global aesthetic, dermatology and consumer skincare products industry with a diversified product and brand portfolio, as well as a wide presence across developed and emerging markets. The company generates healthy EBITDA margins above 22% that will return free cash flow (FCF) to positive territory and EBITDA leverage in the range of 2x-3x post-IPO,” Fitch said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.