Moody’s revises Endo to negative

Moody's Investors Service said it affirmed the ratings of Endo Luxembourg Finance I Co. Sarl, a subsidiary of Endo International plc, including the B2 corporate family rating, B2-PD probability of default rating, Ba2 senior secured rating, and the B3 senior unsecured notes of Endo Finance Co. and Endo Finance LLC.

The speculative grade liquidity rating was affirmed at SGL-2.

At the same time, the agency revised the outlook to negative from stable.

Moody’s said the negative outlook reflects Endo's ongoing growth challenges and the agency’s view that, without debt repayment, earnings declines will result in debt/EBITDA rising above 6 times in 2018. As a consequence, revenue and profit will become increasingly concentrated in its largest product, Vasostrict.

The negative outlook also reflects rising exposure to opioid-related litigation and declining opioid prescriptions volume trends, Moody’s added.

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