Research Update: France-Based Routine Biology Laboratories Holding Company CAB Assigned 'B-' Ratings; Outlook Stable

Biogroup's parent CAB plans to issue a €240 million add-on to the existing €1.025 billion term loan B (TLB) to finance its latest acquisitions. Based on the company's track record, we assume a seamless integration, but we forecast S&P Global Ratings-adjusted leverage will remain in the 8x-8.5x range over the next 12 months. Biogroup's laboratory operations are centered in France with a focus on routine tests, limiting organic growth but producing above-industry-average margins. We are assigning our 'B-' long-term issuer credit and issue ratings to CAB and the TLB. The stable outlook reflects our expectation that Biogroup will maintain its current profitability and EBITDA trajectory, enabling it to gradually decrease leverage and comfortably service debt. The stable outlook reflects our

...- Biogroup's parent CAB plans to issue a 240 million add-on to the existing 1.025 billion term loan B (TLB) to finance its latest acquisitions. - Based on the company's track record, we assume a seamless integration, but we forecast S&P Global Ratings-adjusted leverage will remain in the 8x-8.5x range over the next 12 months. - Biogroup's laboratory operations are centered in France with a focus on routine tests, limiting organic growth but producing above-industry-average margins. - We are assigning our 'B-' long-term issuer credit and issue ratings to CAB and the TLB. - The stable outlook reflects our expectation that Biogroup will maintain its current profitability and EBITDA trajectory, enabling it to gradually decrease leverage and comfortably service debt....

Research Update