...The Negative Outlook on CeramTec BondCo GmbhH reflects rising risk from the pandemic, which the company entered with already high leverage. Its committed strategy for M&A actions creates risk of further debt drawdowns and greater execution challenges. CeramTec's still-high exposure to the industrial segment and the inherent cyclicality of some of industrial segment end-markets further raise the risk of volatile demand. The ratings reflect the moderate size and diversification of CeramTec's operations, which produces high-performance ceramics for healthcare and industrial applications, combined with its highly leveraged capital structure. These limitations are partly offset by CeramTec's well- established market position in the resilient, profitable and well-invested medical applications business. The ratings also factor in strong cash generation and Fitch Ratings' expectation of a balanced approach towards cash deployment, allowing appropriate investment in growth and leaving a comfortable...
