Pharmaceutical Company BCPE Max Dutch Bidco BV (Centrient) Downgraded To 'B-' From 'B' On Operating Underperformance

Netherlands-based pharmaceutical company Max Dutch Bidco BV's (Centrient's) results for first-half 2019 were below expectations, amid customer destocking in Mexico and higher-than-expected price pressures in emerging markets due to product oversupply in China. This led us to revise down our forecast for the company's 2019 EBITDA to €75 million from €90 million previously, with adjusted debt-to-EBITDA now above 5.5x in 2019 and 2020. Therefore, on Oct. 29, 2019, S&P Global Ratings lowered its long-term issuer credit and issue-level ratings on Centrient and its senior unsecured debt to 'B-' from 'B', on deteriorating credit metrics in light of weaker-than-expected market conditions. The stable outlook reflects our view that the company will continue to post continued EBITDA growth, albeit more slowly, because

...October 29, 2019 - Netherlands-based pharmaceutical company Max Dutch Bidco BV's (Centrient's) results for first-half 2019 were below expectations, amid customer destocking in Mexico and higher-than-expected price pressures in emerging markets due to product oversupply in China. - This led us to revise down our forecast for the company's 2019 EBITDA to 75 million from 90 million previously, with adjusted debt-to-EBITDA now above 5.5x in 2019 and 2020. - Therefore, on Oct. 29, 2019, S&P Global Ratings lowered its long-term issuer credit and issue-level ratings on Centrient and its senior unsecured debt to 'B-' from 'B', on deteriorating credit metrics in light of weaker-than-expected market conditions. - The stable outlook reflects our view that the company will continue to post continued EBITDA growth, albeit more slowly, because we expect operating recovery in the second half of the year, when Mexican destocking issues reverse. MADRID (S&P Global Ratings) Oct. 29, 2019--S&P Global Ratings...

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