Fitch revises Galderma view to positive

Fitch Ratings said it revised Sunshine Luxembourg VII Sarl's (Galderma) outlook to positive from stable while affirming the company's long-term issuer default rating at B, and senior secured rating at B+ with an RR3 recovery rating.

“The outlook revision reflects the group´s recent strong financial performance and cost management, which together with its announced approximately $1 billion private placement aimed at partial debt repayment, will lead to its EBITDA gross leverage falling well below our positive sensitivity of 7x by end-2023. The potential upgrade would be subject to Galderma maintaining healthy EBITDA margins from 2024 that returns free cash flow (FCF) to positive territory after a projected outflow in 2023 due to heightened capex and another year of significant working-capital outflow,” Fitch said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.