| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Roar Bidco AB > News item |
S&P trims Recipharm
S&P said it lowered its ratings for Recipharm AB (Roar BidCo AB) and its senior secured debt to B- from B. The 3 recovery rating (60%) on the debt is unchanged.
The agency noted that Recipharm’s EBITDA margin, as adjusted by S&P Global Ratings, contracted to 9% in 2022, compared with a projection of 16%-17%, due to inflationary pressure on raw materials, labor, and energy costs, alongside reduced demand for Covid-19 vaccines.
“High non-recurring costs and the biologics division's slower-than-anticipated ramp-up have weakened Recipharm's margins,” S&P said in a press release.
For this year, S&P said it projects Recipharm’s S&P Global Ratings-adjusted debt to EBITDA will remain elevated at 8.5x-9x in 2023, following an estimate of more than 14x last year.
However, the agency said it expects Recipharm’s S&P Global Ratings-adjusted EBITDA margin to widen to 14%-14.5% in 2023 and 17%-18% in 2024 from 9% in 2022.
The outlook is stable.
© 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.