Moody's snips Aegis Toxicology

Moody's Investors Service said it downgraded Aegis Toxicology Sciences Corp.'s ratings, including its corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD and its senior secured first-lien rating to B3 from B2.

“The ratings downgrade reflects Moody's expectation for a significant decline in earnings in 2023 as revenue from Covid-19 testing rapidly contracts which will not be fully offset by the growth in Aegis' core toxicology business. As a result, Moody's expects that Aegis' leverage will increase to 5.5x in 2023, up from 1.3x in the twelve months ended March 31, 2023.

Furthermore, the downgrade reflects a deterioration in liquidity as the revolving credit facility expired in May 2023 limiting the company's external liquidity sources. While liquidity is supported by $11 million of cash on hand (as of March 31, 2023), it leaves the company vulnerable in the event of an unforeseen decline in cash generation,” Moody’ said in a press release.

The outlook remains 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.