Moody’s turns Theramex view to negative

Moody’s Investors Service said it changed the outlook for IWH UK Finco Ltd. (Theramex), to negative from stable.

“Today’s outlook change to negative primarily reflects Theramex’s significant free cash flow consumption since the closing of the LBO in January 2018, which was well in excess of our expectations because of higher than anticipated carve-out costs. Although we expect that Theramex will generate free cash flow in 2020, its liquidity position is substantially weaker than we had anticipated at the time of the LBO by CVC and debt funding to finance the acquisition of drug licenses will slow down its gross deleveraging,” said Frederic Duranson, a Moody’s assistant vice president and lead analyst for Theramex, in a press release.

Moody’s affirmed Theramex’s B2 and B2-PD probability of default ratings as well as the B2 ratings on the loan facilities borrowed by IWH UK Midco Ltd.

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