Moody’s credit rating agency (Investors Service) has increased the pressure on Grifols, after issuing a downward review of its rating. In this way, its corporate rating has been reduced from B1 to B2 and its probability of default from B1-PD to B2-PD. The company’s restructuring plan -which entailed a change in its leadership- to reduce debt, does not seem to have convinced the agency.
Escrow Issuer, SAU to Caa1 from B3 and has confirmed the senior secured debt ratings of Grifols, Grifols World Wide Operations Ltd. and Grifols World Wide Operations USA, Inc. at Ba3. So the outlook for all entities remains negative.
This downgrade reflects both the weakness of the company’s credit metrics and the expectation that they remain out of bounds for the B1 rating over the next 12-18 months. B2 rating. Moody’s also views the tolerance for successive changes in management as governance risks.
Moody’s rules that the company’s liquidity is adequate, but the negative outlook reflects concerns that the company cannot improve its credit metrics as projected and the need to face large debt maturities in 2025.
Try to reduce your debt
The company now chaired by Thomas Glanzmann explained during the presentation of the 2022 annual results that its roadmap for this year is based on three pillars: increasing revenue and margins, as well as reducing its indebtedness. Last year, it preceded closing with a leverage of 7.1% times the gross operating result (ebitda), up to 9,191 million net debt, a figure that exceeds the forecasts, which pointed to a ratio of 7.9 times. Facing 2023, within the framework of reducing their financial burden, they contemplate several levers: the savings plan worth 400 million, actions focused on improving cash flow and, even, they do not rule out any transaction.
