Moody's upgrades InRetail Pharma

Moody's Investors Service said it upgraded InRetail Pharma SA's corporate family and senior unsecured ratings to Ba1 from Ba2.

"Today's upgrade reflects InRetail Pharma's faster-than-expected deleveraging after Quicorp acquisition in 2018 and sustained credit improvement amid the Covid-19 pandemic outbreak," said Sandra Beltran, a Moody's vice president, in a press release.

"Going forward, Moody's expects InRetail Pharma to continue to grow without pressuring cash generation supported by its asset-light business model," added Beltran.

However, the rating is constrained by its limited geographic diversification and foreign exposure. The Peruvian market accounts for more than 85% of sales and EBITDA and around 65% of its total debt is U.S. dollar-denominated. InRetail Pharma offsets this risk partially by using hedge instruments, Moody’s said.

The outlook is stable.

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