Moody’s changes Catalent view to stable

Moody's Investors Service said it affirmed Catalent Pharma Solutions, Inc.'s corporate family rating at B1, probability of default rating at B1-PD and senior secured credit facility rating at B1.

The outlook was change to stable from positive.

Moody’s said the stabilization of the outlook reflects its view that Catalent's adjusted debt/EBITDA will show only moderate improvement over the next 12 months as foreign exchange headwinds constrain near-term earnings growth.

Further, the agency expects that cash flow will be deployed largely for bolt-on acquisitions in lieu of debt repayment. As a result, Moody's said it believes that adjusted debt/EBITDA (including Moody's standard adjustments) will remain above 4.5 times and the likelihood of an upgrade to Ba3 over the next 12 to 18 months is relatively low.

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