Moody's: Harlan stable

Moody's Investors Service said it changed the outlook of Harlan Laboratories, Inc. to stable from negative and affirmed the B3 corporate family and probability of default ratings and B3 (LGD3, 44%) first-lien revolving credit facility due 2013 and first-lien term loan due 2014.

Moody's also affirmed Harlan Netherlands BV's B3 (LGD3, 44%) first-lien euro revolving credit facility due 2013.

The change in outlook reflects Moody's belief that, while the early-stage contract research organization operating environment will remain challenging, it will not materially deteriorate, supporting relatively stable operations for Harlan over the next year, the agency said.

The stable outlook is also driven by Moody's increased comfort with Harlan's financial reporting and liquidity, supported by the timely filing of Harlan's 2010 audited financials, clean audit opinion by PricewaterhouseCoopers and improved cushion under the company's net leverage covenant, the agency said.

The ratings reflect Harlan's high financial leverage and the expectation for limited improvement in credit metrics over the next year, the agency added.

© 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.