Fitch affirms Strides Arcolab

Fitch Ratings said it affirmed Strides Arcolab Ltd.'s national long-term rating at BBB-(ind).

The outlook is stable.

The rating reflects expectation of an improvement in Strides' credit profile in the medium term, driven by positive earnings prospects for its sterile products segment - the major revenue driver and focus area, the agency said.

This will lead to improved cash flow generation and stable operating margins, which, coupled with limited capital expenditures, will result in Strides' adjusted debt to EBITDA improving to about a third by 2013 of the current consolidated leverage of 6.7x (2010), according to Fitch.

Ratings are constrained by Strides' limited track record in its sterile products manufacturing, the agency said.

© 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.