Moody's rates Generic Drug loans B1

Moody's Investors Service said it assigned Generic Drug Holdings, Inc., doing business as Harvard Drug Group, LLC, B2 corporate family and probability-of-default ratings, and a rating of B1 (LGD3, 37%) to the company's first-lien senior secured credit facilities.

The outlook is stable.

The B2 corporate family rating is constrained by the company's small size and market share in the drug distribution industry and its relatively high financial leverage, the agency said.

Pro forma debt-to-EBITDA ratio is about 4.7 times.

These risks are offset by a diverse business model that also includes an institutional segment, significant customer and vendor diversity, and a good growth outlook for generic pharmaceutical utilization, Moody's said.

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