S&P ups Cheplapharm

S&P said it raised its ratings on Cheplapharm Arzneimittel GmbH, its senior notes and term loan to B+ from B. The agency also removed the ratings from CreditWatch where they were placed with positive implications on Jan. 17.

“We anticipate that Cheplapharm will continue to generate high annual FOCF of €380 million-€420 million in 2022, and €450 million-€500 million in 2023 thanks to its strong profitability and limited capital expenditure (capex) requirements. Cheplapharm operates with an asset-light business model focused on a buy-and-build strategy,” S&P said in a press release.

The agency added it sees Cheplapharm’s operational performance to remain robust in the next 12-18 months due to the integration of recent and potential new acquisitions, supporting S&P Global Ratings-adjusted debt to leverage of 4x-5x.

The outlook is stable.

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