S&P upgrades Catalent

Standard & Poor’s said it raised its corporate credit rating on Catalent Pharma Solutions to BB- from B+ and removed it from CreditWatch, where it was placed with positive implications in July.

The outlook is stable.

At the same time, S&P raised the issue-level rating on Catalent’s senior secured credit facility to BB from BB-, reflecting the raised corporate credit rating. The recovery rating on this debt remains 2, reflecting an expectation of substantial (70%-90%) recovery in the event of payment default.

S&P also raised the rating on the company’s unsecured term loan to BB- from B and revised the recovery rating on this debt to 4 from 5, reflecting an expectation for average (30%-50%) recovery in the event of default.

“Our ratings actions follow the news that Catalent has completed its IPO, with about $750 million in proceeds used to repay debt. Pro forma the debt repayment, we expect leverage to decline to around 5x from around 7x. As a result, we are revising our financial risk profile to ‘aggressive’ from ‘highly leveraged’ and raising our corporate credit rating by one notch,” said S&P credit analyst Shannan Murphy in a news release.

© 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.