Fitch alters Avantor view to stable

Fitch Ratings said it affirmed Avantor, Inc.'s and Avantor Funding, Inc.'s long-term issuer default ratings at BB and revised the outlook to stable from positive, given the company's announcement to acquire Masterflex for roughly $2.9 billion cash.

The company has secured bridge financing, but may use some equity to finance a portion of the transaction.

Fitch said it also affirmed Avantor Funding's secured debt at BB+/RR2, secured bonds at BB+/RR2 and unsecured notes at BB/RR4.

“The stable outlook reflects Fitch's expectation that the company will deleverage to below 4.5x gross debt/EBITDA over the next 18-24 months following the close of the acquisition, but will be more acquisitive than originally assumed,” Fitch said in a news release.

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