Fitch affirms Labco

Fitch Ratings said it affirmed Labco SAS' long-term issuer default rating at B+, its senior secured notes at BB- with a recovery rating of RR3 and the super senior revolving credit facility rating at BB with a recovery rating of RR2.

The outlook on the issuer default rating is stable.

The affirmations reflect Labco's solid year to date financial performance with revenue, EBITDA and key credit metrics in line with expectations, according to the agency.

"Labco has improved its credit metrics despite difficult macro-economic conditions, with pricing pressure from government and insurance payers, in its major markets, mitigated by increased volumes and mix," Malcolm O'Connell, an associate director at Fitch, said in a statement.

Ratings reflect Labco's leading positions in the stable and non-cyclical European clinical laboratory servicing market, the agency said.

Labco also benefits from its good geographical diversification, which reduces reliance on single country health care systems, the agency noted.

Labco's financial risk is considered high for the rating, with net lease adjusted leverage of 5.1 times.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.