Moody’s gives Emergent BioSolutions Ba2, notes Ba3

Moody’s Investors Service said it assigned first-time ratings to Emergent BioSolutions Inc., including a Ba2 corporate family rating, a Ba2-PD probability of default rating, a Ba3 senior unsecured rating and an SGL-1 speculative grade liquidity rating.

“Emergent’s Ba2 corporate family rating reflects its niche position developing and manufacturing products that treat public health threats. Areas of focus include public health outbreaks such as the coronavirus pandemic, vaccines for military and civilian use, travel health, and the U.S. opioid epidemic,” Moody’s said in a press release.

Proceeds will be used to repay outstanding revolver borrowings and for general corporate purposes. The revolver borrowings relate to prior acquisitions made by Emergent.

“The Ba3 rating on the senior unsecured notes reflects the presence of secured debt in Emergent’s capital structure in the form of a $430 million term loan and a $600 million revolving credit facility. The revolver is expected to be undrawn following the senior notes issuance,” Moody’s said.

The outlook is stable, reflecting steady growth in the company’s product portfolio, the agency said.

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