Moody's upgrades ConvaTec

Moody's Investors Service said it upgraded the corporate family rating of Convatec Group plc to Ba2 from Ba3 and its probability of default rating to Ba2-PD from Ba3-PD. Concurrently, Moody's changed ConvaTec's outlook to stable from positive.

“Since 2019, ConvaTec has been implementing a far-reaching business transformation which has enabled it to improve its sales execution and bring its organic revenue growth in line with market levels. While this program has not yielded consistent improvements in EBITDA so far, earnings have been stable despite material costs in undertaking the transformation (which are expensed in ConvaTec's and Moody's EBITDA calculations). At the same time, the company continues to generate healthy cash flow allowing it to address its debt amortization schedule,” Moody’s said in a press release.

The agency said the outlook reflects the forecast that ConvaTec will deliver sustained organic revenue growth broadly in line with its markets, with EBITDA growing at least at the level of revenue from 2022.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.