S&P rates Gerresheimer bond B-

Standard & Poor's said it assigned a B- rating to Gerresheimer Alpha GmbH's proposed €60 million subordinated bonds and affirmed the B+ long-term corporate credit rating on Gerresheimer and subsidiary Gerresheimer Holdings GmbH.

The outlook was revised to negative from stable following the group's announcement that it will use the bond to finance the acquisition of Superfos Pharma Pack.

The ratings reflect Gerresheimer's highly leveraged financial profile and increasingly aggressive financial policy, the agency said. Following the acquisition of Superfos, S&P predicted Gerresheimer will have pension-adjusted net cash debt of €650 million, including €180 million of unfunded pension liabilities and excluding €81 million of noncash pay vendor and shareholder loans.

These factors are mitigated by the group's good geographical diversification and leading positions in highly consolidated and growing pharmaceuticals end markets - markets characterized by strong relationships and cooperation between suppliers and customers that provide high barriers to entry, the agency said.

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