Research Update: Italy-Based Plastic And Glass Packaging Producer Bormioli Pharma Downgraded To 'B-' On Refinancing Risks; Outlook Stable

The majority of Bormioli Pharma's debt matures in the next two years. This includes around €54 million due under local debt facilities in the next 12 months; the €55 million revolving credit facility (RCF) due in May 2024; and the €280 million senior secured notes due in November 2024. We assess the market's current borrowing conditions, including limited lending appetites and high interest rates, as challenging. Although this might improve in 2023, we view the group's refinancing horizon as a negative factor in our credit rating assessment. As a result, we lowered our issuer credit rating on Bormioli Pharma to 'B-' from 'B'. We also lowered our issue rating on the €55 million super senior RCF from 'BB-' to 'B+'

...- The majority of Bormioli Pharma's debt matures in the next two years. This includes around 54 million due under local debt facilities in the next 12 months; the 55 million revolving credit facility (RCF) due in May 2024; and the 280 million senior secured notes due in November 2024. - We assess the market's current borrowing conditions, including limited lending appetites and high interest rates, as challenging. Although this might improve in 2023, we view the group's refinancing horizon as a negative factor in our credit rating assessment. - As a result, we lowered our issuer credit rating on Bormioli Pharma to 'B-' from 'B'. We also lowered our issue rating on the 55 million super senior RCF from '##-' to 'B+' and on the 280 million senior secured notes from 'B' to 'B-'. - The stable outlook indicates that we expect Bormioli Pharma's credit metrics will remain commensurate with the rating for the next 12 months. We anticipate debt to EBITDA of around 7.0x by year-end 2022 and below...

Research Update