Research Update: Huvepharma EOOD Outlook Revised To Stable From Positive; 'BB' Rating Affirmed - S&P Global Ratings’ Credit Research

Research Update: Huvepharma EOOD Outlook Revised To Stable From Positive; 'BB' Rating Affirmed

Research Update: Huvepharma EOOD Outlook Revised To Stable From Positive; 'BB' Rating Affirmed - S&P Global Ratings’ Credit Research
Research Update: Huvepharma EOOD Outlook Revised To Stable From Positive; 'BB' Rating Affirmed
Published May 11, 2020
7 pages (3093 words) — Published May 11, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Despite strong revenue growth, Huvepharma EOOD under-achieved our base-case scenario in 2019 because of slower-than-expected returns on investment and some profitability erosion, with S&P Global Ratings-adjusted debt to EBITDA increasing to 3.9x, from our initial estimate of 2.5x-3.0x. We believe the completion of strategic investment projects will gradually translate into profitable growth. However, we anticipate that S&P Global Ratings-adjusted debt to EBITDA will not improve to below 2.5x before 2022, owing to the high peak posted last year. We are therefore revising the outlook to stable from positive and affirming the 'BB' long-term issuer credit rating on Huvepharma. The stable outlook reflects our expectation of strong and profitable revenue growth in 2020 such that S&P Global Ratings-adjusted debt to EBITDA

  
Brief Excerpt:

...- Despite strong revenue growth, Huvepharma EOOD under-achieved our base-case scenario in 2019 because of slower-than-expected returns on investment and some profitability erosion, with S&P Global Ratings-adjusted debt to EBITDA increasing to 3.9x, from our initial estimate of 2.5x-3.0x. - We believe the completion of strategic investment projects will gradually translate into profitable growth. - However, we anticipate that S&P Global Ratings-adjusted debt to EBITDA will not improve to below 2.5x before 2022, owing to the high peak posted last year. - We are therefore revising the outlook to stable from positive and affirming the '##' long-term issuer credit rating on Huvepharma. - The stable outlook reflects our expectation of strong and profitable revenue growth in 2020 such that S&P Global Ratings-adjusted debt to EBITDA reduces to at least toward 3x and well below over the next 18 months....

  
Report Type:

Research Update

Ticker
4110303Z
Issuer
Huvepharma EOOD
GICS
Pharmaceuticals (35202010)
Sector
Global Issuers
Country
Bulgaria
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Huvepharma EOOD Outlook Revised To Stable From Positive; 'BB' Rating Affirmed" May 11, 2020. Alacra Store. May 15, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Huvepharma-EOOD-Outlook-Revised-To-Stable-From-Positive-BB-Rating-Affirmed-2428516>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Huvepharma EOOD Outlook Revised To Stable From Positive; 'BB' Rating Affirmed May 11, 2020. New York, NY: Alacra Store. Retrieved May 15, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Huvepharma-EOOD-Outlook-Revised-To-Stable-From-Positive-BB-Rating-Affirmed-2428516>
  
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