Bulletin: Stada Rating Can Withstand Russian Exposure Risks Based On Current Scenarios

This report does not constitute a rating action. MADRID (S&P Global Ratings) March 17, 2022--S&P Global Ratings today said Stada?s ( Nidda BondCo GmbH ; B/Stable/--) Russian exposure is credit negative, owing to local currency devaluation, but mitigated by strong underlying performance in other regions and management's contingency measures. The company's Russian operations face uncertainty related to supply chain disruption given international sanctions, as well as operating margin and working capital pressure from local currency devaluation. Stada generates about 14% of its sales in Russia and 1% in Ukraine. The group has two manufacturing facilities in Russia and a local sales platform, which should allow its core generics business to continue supplying essential medication in the Russian market. We anticipate

...MADRID (S&P Global Ratings) March 17, 2022--S&P Global Ratings today said Stada's (Nidda BondCo GmbH; B/Stable/--) Russian exposure is credit negative, owing to local currency devaluation, but mitigated by strong underlying performance in other regions and management's contingency measures. The company's Russian operations face uncertainty related to supply chain disruption given international sanctions, as well as operating margin and working capital pressure from local currency devaluation. Stada generates about 14% of its sales in Russia and 1% in Ukraine. The group has two manufacturing facilities in Russia and a local sales platform, which should allow its core generics business to continue supplying essential medication in the Russian market. We anticipate that adjusted leverage might increase to 8.0x-8.5x in 2022 if the group post sales and EBITDA in Russia at 70% of its former level. Leverage might rise to 8.5x-9.0x if Stada achieves only 50% of its normally expected sales and EBITDA...

Bulletin