S&P lifts Hikma view to positive

S&P said it revised the outlook on Hikma Pharmaceuticals to positive from stable and affirmed its BB+ issuer credit rating.

The agency said it projects that Hikma will continue to deliver robust operating performance while maintaining stable debt-protection metrics.

The company's well-diversified portfolio with a focus on injectable generics and recently optimized cost base should support further earning growth and cash flow generation, S&P said.

The positive outlook also reflects a potential upside for the ratings in the coming 12 to 24 months if Hikma continues to grow organically or potentially through mergers and acquisitions while avoiding material profitability erosion and maintaining a debt-to-EBITDA ratio of less than 2x on a sustainable basis, the agency said.

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