Fitch gives Fabbrica Italiana Sintetici B

Fitch Ratings said it assigned Fabbrica Italiana Sintetici an expected first-time long-term issuer default rating of B. Fitch also gave FIS' upcoming €350 million of notes an expected senior secured instrument rating of B+ with an RR3 recovery rating. The company also plans to obtain a €50 million revolver.

“The ratings balance FIS' well-established position in the non-cyclical and structurally growing European CDMO (contract development and manufacturing organization) market, its solid manufacturing asset base and know-how with a modest scale, product and customer concentration risks as well as weak free cash flow (FCF) generation during the company's strategic capex growth. The rating is supported by modest financial leverage and our expectation of a prudent financial policy that favors low leverage against shareholder remuneration,” the agency said in a press release.

FIS plans to use the note proceeds in a refinancing.

The outlook is stable.

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