S&P assigns Akorn, loan CCC+

S&P said it assigned CCC+ ratings to Akorn Operating Co. LLC and its $370 million senior secured term loan. The recovery rating is 3, reflecting the expectation for meaningful recovery (50% to 70%; rounded estimate: 50%) in the event of default.

Akorn emerged from Chapter 11. “We expect significant operational recovery in 2021, driven by the discontinuation of substantial one-time costs and expenses from 2020 and demand recovery from the Covid-19 pandemic,” the agency said in a press release.

The outlook is stable. S&P said the outlook reflects its estimate for adjusted leverage of around 6x and free cash deficits.

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