S&P puts Huvepharma on positive watch

S&P said it placed Huvepharma EOOD’s BB ratings on CreditWatch with positive implications.

Huvepharma reported it started the process for an IPO and plans to raise about €300 million in proceeds to pay down debt and fund growth capital expenditures, S&P said.

“Assuming a successful placement, we estimate that this could result in S&P Global Ratings-adjusted debt to EBITDA of around 1.2x-1.3x, in line with the company's guidance of below 1.5x. The company has a stated intention of maintaining target net debt leverage of 2.0x or below, beyond the placement, which supports a higher rating. We factor into our rating that the company has ambitious plans to expand its vaccines portfolio, which are still at a very early stage,” the agency said in a press release.

S&P said it aims to resolve the CreditWatch in the next three months once Huvepharma goes public and it has evaluated its prospects and financial policy.

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