Moody’s gives Huvepharma loans B1

Moody's Investors Service said it assigned a provisional B1 corporate family rating to Huvepharma International BV, a parent company of Huvepharma AD, a vertically integrated developer, manufacturer and distributor of a wide range of animal health products to livestock animals with a concentration in poultry and swine.

The agency also assigned provisional B1 ratings to the proposed €75 million senior secured term loan A, €180 million senior secured term loan B and €20 million senior secured revolving credit facility.

The outlook is positive.

Moody’s said the provisional B1 rating primarily reflects Huvepharma's small size, which constraints the company's operating and financial flexibility compared to larger competitors.

However, these constraints are partly offset by the company's (a) strong positioning in key niche segments where they proved their ability to successfully compete with a few larger players based on competitive quality and strong reputation among customers; (b) fairly balanced diversification across products, geographies, and customer base; and (c) track record of profitable growth at an annual rate exceeding 20% over the last few years and historical adjusted EBITDA margin of above 20%, the agency said.

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