Research Update: Huvepharma Rating Off Watch And Affirmed At 'BB' On Cancelled IPO; Outlook Positive On Projected Sustained Deleveraging

On June 30, 2021, the parent of Bulgaria-headquartered animal health products manufacturer, Huvepharma EOOD, announced that it had canceled the process for an initial public offering (IPO) on the Amsterdam Stock Exchange. We anticipate Huvepharma's strong 2020 operating performance will continue thanks to recent product launches and vertical integration. This should de-risk its profile despite our expectation that capital expenditure (capex) will remain high. As a result, we affirmed our 'BB' long-term issuer credit rating on Huvepharma, and removed it from CreditWatch, where we placed it with positive implications on June 21, 2021. The positive outlook reflects that we could raise the rating on Huvepharma in the next 12-18 months if it continues to post robust operating performance, with S&P

...- On June 30, 2021, the parent of Bulgaria-headquartered animal health products manufacturer, Huvepharma EOOD, announced that it had canceled the process for an initial public offering (IPO) on the Amsterdam Stock Exchange. - We anticipate Huvepharma's strong 2020 operating performance will continue thanks to recent product launches and vertical integration. This should de-risk its profile despite our expectation that capital expenditure (capex) will remain high. - As a result, we affirmed our '##' long-term issuer credit rating on Huvepharma, and removed it from CreditWatch, where we placed it with positive implications on June 21, 2021. - The positive outlook reflects that we could raise the rating on Huvepharma in the next 12-18 months if it continues to post robust operating performance, with S&P Global Ratings-adjusted EBITDA margins of close to 30% supporting net debt leverage comfortably at 2x-3x....

Research Update