Research Update: Dialysis Provider Diaverum Holding 'B-' Rating Affirmed Following IPO Cancellation; Outlook Stable

On Nov. 27, 2020, Diaverum AB, the subsidiary of Diaverum Holding S.a.r.l., announced that it will not proceed with the planned public listing on the Nasdaq Stockholm Stock Exchange, originally announced on Nov. 16, 2020. We understand that the existing capital structure will remain in place, with financial sponsor Bridgepoint Advisers committed to retaining its controlling stake in the business. We therefore no longer expect material debt reduction, and forecast S&P Global Ratings' adjusted debt to EBITDA of above 7.0x with free operating cash flow (FOCF) reinvested into growth, metrics that we see as commensurate with the existing rating. We are therefore affirming all our ratings on Diaverum Holding, including our 'B-' issuer credit rating, and removing them from CreditWatch,

...- On Nov. 27, 2020, Diaverum AB, the subsidiary of Diaverum Holding S.a.r.l., announced that it will not proceed with the planned public listing on the Nasdaq Stockholm Stock Exchange, originally announced on Nov. 16, 2020. - We understand that the existing capital structure will remain in place, with financial sponsor Bridgepoint Advisers committed to retaining its controlling stake in the business. - We therefore no longer expect material debt reduction, and forecast S&P Global Ratings' adjusted debt to EBITDA of above 7.0x with free operating cash flow (FOCF) reinvested into growth, metrics that we see as commensurate with the existing rating. - We are therefore affirming all our ratings on Diaverum Holding, including our 'B-' issuer credit rating, and removing them from CreditWatch, where we placed them with positive implications on Nov. 20, 2020. - The stable outlook reflects our expectation that the group's operating performance should remain resilient amid the ongoing COVID-19 pandemic,...

Research Update