Moody's cuts Covis

Moody’s Investors Service said it downgraded Covis Finco Sarl’s first-lien bank credit facilities to B2 from B1 and its second-lien term loan to Caa2 from Caa1. Concurrently, the agency lowered Covis Midco 2 Sarl’s corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

The agency also placed all ratings on review on downgrade.

"Today's ratings downgrades reflect financial performance running behind Moody's expectations at the time of the refinancing in early 2022 when ratings were weakly positioned initially," said Frederic Duranson, a Moody's vice president, senior analyst and lead analyst for Covis, in a press release.

"The opening of the ratings review follows a U.S. Food and Drug Administration (FDA) Advisory Committee recommendation to remove Covis' third largest drug Makena from the market, a scenario which would significantly weaken Covis' credit ratios and liquidity," Duranson added.

Makena accounts for 16% of Covis’ revenue.

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