S&P affirms Hikma Pharmaceuticals

S&P said it affirmed its BB+ long-term issuer credit rating on Hikma Pharmaceuticals plc.

The outlook is stable.

The agency also affirmed the BB+ issue rating on the group's $500 million bond. The recovery rating is 3, reflecting an expectation of meaningful recovery (50%-70%; rounded estimate 65%) in the event of default.

“The affirmation balances that Hikma currently has headroom in its financial risk profile with the uncertainty we see stemming from the impact of possible sizable acquisitions over the longer term,” S&P said in a news release.

“Although we now regard Hikma's financial risk profile as moderate, stronger than our previous assessment of intermediate, our current forecasts do not capture any sizable acquisition that could eventually affect the group's balance sheet.”

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