Hikma Pharmaceuticals' credit metrics have improved, with an adjusted debt to EBITDA strengthening to below 2x. This has lead us to positively reassess the group's financial risk profile as modest. We believe that, although Hikma currently has some headroom in its credit metrics, possible external growth could eventually weigh on the group's balance sheet in the longer term. We are therefore affirming our 'BB+' ratings on Hikma and its debt. The stable outlook reflects that, despite continued price erosion, Hikma's earnings will remain resilient, translating into adjusted debt to EBITDA comfortably below 3x and funds from operations (FFO) to debt above 30%. On June 29, 2018, S&P Global Ratings affirmed its 'BB+' long-term issuer credit rating on Hikma Pharmaceuticals PLC.
