S&P upgrades Almirall

S&P said it raised the corporate credit rating on Almirall SA to BB from BB-, along with the rating on its €325 million senior unsecured notes to BB from BB-.

The recovery rating on the notes remains at 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The upgrades reflect a view that Almirall has made good progress in the past year in transforming into a specialty pharma company, S&P said, and that the pace of acquisitions will likely remain steady, allowing the company to maintain an adjusted debt-to-EBITDA of less than 3x, S&P said.

The company’s business risk profile is constrained by its lack of critical mass even though it has significantly improved in the past year with the implementation of its strategic shift toward a derma specialty model, the agency said.

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