Moody's rates Gerresheimer notes Ba1

Moody's Investors Service said it assigned a provisional Ba1 (LGD4, 50%) rating to the notes issue proposed by Gerresheimer AG and guaranteed by some of its major operating subsidiaries.

The outlook is stable.

Proceeds of the notes issue will be used to refinance existing debt and for general corporate purposes.

The Ba1 instrument rating is reflects the pari passu ranking of the proposed notes with the vast majority of the group's financial debt, the agency said.

Gerresheimer's Ba1 corporate family rating takes into consideration the limited cyclicality of the company's end markets, Gerresheimer's established market positions and customer relationships in the pharmaceuticals industry, significant barriers to entry as a substantial portion of revenues comes from products that require customer validation processes and/or regulatory approval and a clear strategic focus on high growth niche markets for value-added specialty packaging, the agency said.

The rating also takes into consideration that selective acquisitions are an integral part of Gerresheimer's strategy, which might adversely impact credit metrics, the agency added.

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