S&P: Gerresheimer on positive watch

Standard & Poor's said it placed its B+ long-term corporate credit ratings on Gerresheimer Alpha GmbH and its fully owned subsidiary Gerresheimer Holdings GmbH on CreditWatch with positive implications.

This follows the group's announcement that it is considering an IPO, the agency said.

"A successful IPO could improve Gerresheimer's financial profile if the proceeds are used for debt repayments, although it should be noted that the group's current credit measures are weak for the existing ratings," said S&P credit analyst Izabela Listowska.

"The current ratings on Gerresheimer primarily reflect Gerresheimer's highly leveraged financial profile, including weak cash-flow-coverage ratios and high debt levels. These factors are mitigated by the group's leading positions in largely consolidated and growing pharmaceuticals and life science end markets and good geographic diversification," added Listowska.

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