Bulletin: Fresenius SE&Co. KGaA's Debt-Reduction Prospects Remain Intact Despite Losses At Vamed - S&P Global Ratings’ Credit Research

Bulletin: Fresenius SE&Co. KGaA's Debt-Reduction Prospects Remain Intact Despite Losses At Vamed

Bulletin: Fresenius SE&Co. KGaA's Debt-Reduction Prospects Remain Intact Despite Losses At Vamed - S&P Global Ratings’ Credit Research
Bulletin: Fresenius SE&Co. KGaA's Debt-Reduction Prospects Remain Intact Despite Losses At Vamed
Published Aug 03, 2023
3 pages (1448 words) — Published Aug 03, 2023
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Abstract:

This report does not constitute a rating action. DUBLIN (S&P Global Ratings) Aug. 3, 2023--S&P Global Ratings said today that the prospects of Fresenius SE&Co. KGaA (FSE; BBB/Negative/A-2) reducing its leverage below our downgrade threshold of 4x by 2024 remain intact despite losses at investment company Fresenius Vamed (Vamed). This is because of Vamed's comparatively modest shares of group-reported revenue and EBITDA of 11% and 3%, respectively, in 2022, and good growth momentum at the main profit generators, Fresenius Kabi (Kabi) and Fresenius Helios (Helios). In the first half of 2023, Vamed reported negative EBIT of €47 million, burdened by ongoing restructuring. The restructuring is partly due to apparent missteps in its ambitious international expansion efforts. Vamed is

  
Brief Excerpt:

...August 3, 2023 This report does not constitute a rating action. DUBLIN (S&P Global Ratings) Aug. 3, 2023--S&P Global Ratings said today that the prospects of Fresenius SE & Co. KGaA (FSE; ###/Negative/A-2) reducing its leverage below our downgrade threshold of 4x by 2024 remain intact despite losses at investment company Fresenius Vamed (Vamed). This is because of Vamed's comparatively modest shares of group-reported revenue and EBITDA of 11% and 3%, respectively, in 2022, and good growth momentum at the main profit generators, Fresenius Kabi (Kabi) and Fresenius Helios (Helios). In the first half of 2023, Vamed reported negative EBIT of 47 million, burdened by ongoing restructuring. The restructuring is partly due to apparent missteps in its ambitious international expansion efforts. Vamed is now in turnaround mode, and has a stronger control function with a largely refreshed supervisory board and a newly established audit committee. We consider that it will take time for Vamed to return...

  
Report Type:

Bulletin

Ticker
FRE@GR
Issuer
Fresenius SE&Co. KGaA
GICS
Health Care Services (35102015)
Sector
Global Issuers
Country
Germany
Region
Europe, Middle East, Africa
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Fresenius SE&Co. KGaA's Debt-Reduction Prospects Remain Intact Despite Losses At Vamed" Aug 03, 2023. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Fresenius-SE-Co-KGaA-s-Debt-Reduction-Prospects-Remain-Intact-Despite-Losses-At-Vamed-3029595>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Fresenius SE&Co. KGaA's Debt-Reduction Prospects Remain Intact Despite Losses At Vamed Aug 03, 2023. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Fresenius-SE-Co-KGaA-s-Debt-Reduction-Prospects-Remain-Intact-Despite-Losses-At-Vamed-3029595>
  
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