Moody's downgrades Kedrion

Moody's Investors Service said it downgraded Kedrion SpA's corporate family rating to B2 from B1 and its probability of default rating to B2-PD from B1-PD. Concurrently, the agency lowered the rating on Kedrion's €410 million of backed senior secured notes due 2026 to B2 from B1.

“The downgrade of Kedrion's ratings to B2 reflects the prolonged effects of the Covid pandemic on the company's operating performance and a weakening liquidity profile. The still-low U.S. plasma collection volumes and high donor fees will continue to affect Kedrion's earnings and cash flow in the next 12 to 18 months, resulting in elevated leverage and negative free cash flow generation,” Moody’s said in a press release.

The agency said it projects Kedrion's Moody's-adjusted EBITDA will decline by about 20% in 2021. “Moody's expects that there will be a gradual increase in plasma volumes in the coming quarters, but, given the time lag between plasma collections and the sale of plasma-derivatives, Kedrion's revenue and earnings will take time to recover.”

The outlook is negative.

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