S&P rates Wedgewood Pharmacy, loan B-

S&P said it gave B- ratings to Specialty Pharma II Inc. (Wedgewood Pharmacy) and its planned senior secured credit facility. The facility’s recovery rating is 3, reflecting an expectation for meaningful recovery (50%-70%; rounded estimate 50%) in default.

“Our B- rating reflects Wedgewood’s very small scale and limited potential for meaningful business expansion. With less than $200 million of pro forma revenues in 2020, Wedgewood is firmly at the smaller end of the spectrum relative to the health care industry peers we rate,” S&P said in a press release.

The outlook is stable, reflecting an expectation for high-single-digit percent annual revenue growth supported by strong growth in the outsourced U.S. animal health compounding pharmacy market, the agency said.

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