Moody's gives Fabbrica Italiana B3

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Fabbrica Italiana Sintetici. Concurrently, Moody's gave a B3 instrument rating to the planned €350 million of sustainability-linked senior secured notes.

“Meaningful customer, product and supplier concentration constrain FIS' credit profile. For the last 12 months (LTM) ending September 2021, FIS generated 24% of sales from its top custom molecule, and this molecule's patent expires in June 2024, leading to potential revenue losses. Moody's expects the relative contribution from the company's top-selling molecule to decrease given the pipeline of new products. FIS currently has 15 custom and 15 generic drugs in the development phase, and Moody's expects a continued increase of revenues from new products to help reduce the product concentration and mitigate the negative impact on group revenue and profitability of the patent expiry,” the agency said in a press release.

FIS will use the proceed to repay legacy debt, pay a one-time €40 million dividend and pay associated transaction fees.

The outlook is positive.

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