On Oct. 25, 2019, Czech-based pharmaceutical company Zentiva announced that it agreed to buy Alvogen's Central and Eastern European (CEE) business comprising a portfolio of more than 200 generic and over-the-counter (OTC) products. Although Zentiva has yet to disclose the final capital structure for the takeover, we believe that the group's leverage may increase materially above our current base case given the size of the targeted transaction. We are therefore placing our 'B' ratings on AI Sirona (Luxembourg) Acquisition Sarl--Zentiva's parent company--its senior secured notes on CreditWatch with negative implications. We expect to resolve the CreditWatch in the next three to six months, once we have clarity on the new capital structure, business integration plan, and the financial policy post
