Moody’s lowers Lannett

Moody's Investors Service said it downgraded the ratings of Lannett Co., Inc., including the corporate family rating to Ca from Caa1 and the probability of default rating to Ca-PD from B3-PD.

Moody's also downgraded the first-lien senior secured notes rating to Caa3 from B3.

The speculative grade liquidity rating was downgraded to SGL-4 from SGL-3.

The outlook is stable.

“The downgrade reflects Moody's expectation for continued deterioration in Lannett's operating performance, as base portfolio of oral generic drugs will continue to erode due to intense competitive pricing pressures,” the agency said in a news release.

“Given the forecast of negative EBITDA over the next year, Moody's views Lannett's debt levels as unsustainably high, and liquidity as weak, with the company continuing to burn through cash balance, well into fiscal year 2024.”

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