Fitch moves Fresenius view to negative

Fitch Ratings said it revised the outlook for Fresenius SE & Co. KGaA (FSE) and its largest subsidiary Fresenius Medical Care AG & Co. KGaA (FMC) to negative from stable and affirmed the long-term issuer default rating at BBB-.

The outlook revision reflects increased execution risks amid an anemic operating performance and eroding near-term credit prospects for FMC, which affects FSE's credit profile, the agency said.

“The group's execution risks are further exacerbated by FSE embarking on a wider comprehensive turnaround strategy, the details of which are not yet known,” Fitch said in a press release.

The outlook reflects the view “that the next 18-24 months will be decisive for determining FSE's ability to reverse its declining profitability and return to sustained profitability growth,” the agency added.

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