Moody's assigns Covis Pharma, loans B2

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Covis Midco 2 Sarl in the context of the group's refinancing of its entire capital structure. The agency also gave B2 ratings to the planned $350 million backed senior secured first-lien term loan B and pari passu ranking $100 million backed senior secured multicurrency revolving credit facility maturing in 2027. Covis Finco Sarl will be the borrower. The outlook on both entities is stable.

"Today's rating assignments balance risks related to generic competition, regulatory decisions and recovery from the pandemic with supportive credit characteristics such as Covis' good market positions and relatively high barriers to entry," said Frederic Duranson, a Moody's vice president, senior analyst and lead analyst for Covis, in a press release.

"At the same time, Covis will have a capital structure to accommodate some of the above risks, amid solid cash generation," Duranson added.

The outlook reflects expectations that Covis credit metrics will weaken in the next 12 to 18 months before the company returns to low single-digit organic growth in revenue and EBITDA from 2023, the agency noted.

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