Huvepharma AD is buying out its minority shareholder, The Rohatyn Group, and financing the transaction by issuing term loans totalling €255 million. We assess Huvepharma's business risk profile as "weak" and its financial risk profile as "significant." We are therefore assigning preliminary 'BB-' ratings to Huvepharma and its proposed senior secured facilities. The positive outlook reflects the possibility of an upgrade, given the company's sound market positions and our expectation that it will quickly reduce comparatively high leverage in 2014. On July 25, 2014, Standard&Poor's Ratings Services assigned its preliminary 'BB-' long-term corporate credit rating to Bulgaria-based Huvepharma AD, a producer of animal health products and feed additives, and contractor for development and manufacturing for the pharmaceutical industry.
