Moody's rates Octapharma Ba1

Moody's Investors Service said it downgraded Octapharma Nordic AB's long-term issuer rating to Ba1 from Baa3 and withdrew its issuer rating.

The agency also said it assigned a Ba1 corporate family rating and Ba1 probability of default rating to the company.

The outlook was changed to negative.

The downgrade concludes a review that began in September, Moody's said.

The downgrade reflects the ongoing review process by the U.S. Food and Drug Administration and by the European Medicines Agency into Octapharma's products after reports of serious side effects, Moody's said.

The agency said it believes that it may take longer than it initially expected to bring the product back on market.

The negative outlook reflects the possibility of delays in the review process and increased pressure on Octapharma's profits and cash flows, which could exert further downward pressure on the rating, Moody's added.

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