Diaverum Holding Sarl

Overview Key strengths Key risks Life-saving nature of dialysis services ensures recurring cash flows and good business visibility. Sizable tender contract renewals in 2023, particularly in Saudi Arabia. Positive underlying growth prospects due to prevalence of chronic kidney related diseases. Ongoing operating cost pressures from the COVID-19 pandemic and general inflationary environment. Geographic diversity with growing exposures to emerging markets that have good growth prospects. Currency volatility from exposure to emerging markets. Simplified operating structure following the completion of the consolidation of Saudi Arabian operations in 2021. High S&P Global Ratings' adjusted debt leverage of above 7x, owing to financial sponsor-ownership and ongoing debt-funded external growth. We attribute this to the nondiscretionary, life-saving nature of dialysis services, whereby it is

...Diaverum maintained operational resilience in 2021 as we anticipated, with some key performance indicators better than our base case. We attribute this to the nondiscretionary, life-saving nature of dialysis services, whereby it is not possible to delay treatments. At about 3% in 2021, the pandemic-related mortality of Diaverum's dialysis patients was lower than that reported by U.S.-focused peers Fresenius Medical Care and Davita Inc. S&P Global Ratings' adjusted EBITDA (after exceptional costs and final cash dividends from Saudi Arabian operations) stood at about 204 million in 2021 with a corresponding margin of 23%, which...

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