S&P rates Kedrion, loan, notes B

S&P said it assigned Kedrion SpA, its planned €140 million senior secured term loan A and €410 million senior secured bond preliminary B ratings. The recovery rating on the loan and notes is 3 (rounded estimate: 60%).

The company also plans to secure a €100 million revolving credit facility.

“With a 3% market share, Kedrion is the fifth-largest plasma producer globally in an industry that has been largely dominated by three groups: CSL (29%), Grifols (20%), and Takeda (20%). However, Kedrion holds a strong position in the markets in which it operates, such as No. 1 position in Italy (about 35% market share), and has a strong presence in specific niches in core markets such as anti-rabies, anti-D and factor VII in the U.S.,” S&P said in a press release.

However, the agency noted Kedrion’s manufacturing footprint is limited compared to its peers.

The outlook is positive. The outlook reflects an expectation Kedrion's EBITDA will continue growing, supported by the positive dynamics of the plasma derivatives market, the group's increasing market share in the U.S., and its tight grip on costs, S&P said.

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