Albany, N.Y.-based Albany Molecular Research Inc. announced that it has agreed to be acquired by financial sponsors The Carlyle Group and GTCR LLC in a debt- and equity-financed transaction. We are placing our ratings on Albany Molecular, including our 'B' corporate credit rating, on CreditWatch with negative implications. Albany Molecular is currently highly leveraged, with adjusted leverage approaching 8x following its mid-2016 acquisition of Prime European Therapeuticals SpA. Funds from operations (FFO) to total adjusted debt is in the mid-single-digits. While the final capital structure post-LBO is yet to be determined, Albany Molecular's credit measures will likely weaken, and lead to a potential ratings downgrade of one notch, to 'B-'. On June 7, 2017, S&P Global Ratings placed its ratings
