Moody’s downgrades Amneal

Moody's Investors Service said it downgraded the ratings of Amneal Pharmaceuticals, LLC, including the corporate family rating to B2 from B1, probability of default rating to B2-PD from B1-PD, and senior secured term loan to B2 from B1.

Moody's downgraded the speculative grade liquidity rating to SGL-2 from SGL-1.

The outlook is stable.

“The downgrade reflects Moody's view that Amneal's earnings will decline over the next twelve months due to increased competition on existing products and weak contribution from new products,” Morris Borenstein, Moody’s vice president, said in a news release.

“As a result, Moody's believes that debt/EBITDA will increase to over 6 times, from around 5 times today. Leverage will remain at this elevated level for the next 12-18 months unless Amneal is successful in reducing its cost base in order to offset declines from its base of existing products.”

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