Moody's affirms Mayne

Moody's Investors Service said it affirmed Mayne Group Ltd.'s senior unsecured rating of Ba1.

At the same time, Moody's revised the rating outlook to negative from stable.

The change in outlook was driven by the announcement that the company is undertaking a strategic review to assess the merits of a de-merger, which would involve separate listings of its global pharmaceutical business and an entity focused on its domestic healthcare activities, according to Moody's.

Moody's noted that should the portfolio restructuring proceed without any cash inflow to the continuing entity it is likely that downward rating pressure would emerge, given a consequent material reduction in business diversity, and which may not be offset by a commensurate reduction in financial risk.

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