Fitch moves Perrigo outlook to negative

Fitch Ratings said it changed its outlook for Perrigo Co. plc to negative from stable.

“The revision of the rating outlook to negative from stable reflects the challenge that the company may not reduce EBITDA leverage (total debt/EBITDA) to 4x or below by mid to late 2024 through operating business improvement including margins, despite Fitch's expectation that the company will pay down $700 million of debt in 2024. The company needs to execute on improvements in its manufacturing footprint, expanding markets for HRA-acquired products and operating efficiencies,” Fitch said in a press release.

The agency also affirmed Perrigo’s BB+ issuer rating. Fitch also affirmed the debt ratings, including Perrigo's senior unsecured notes at BB+/RR4, Perrigo Finance Unlimited Co.'s senior unsecured notes at BB+/RR4 and Perrigo Investments LLC's senior secured revolver and term loans at BBB-/RR1.

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