Moody’s Isolates Grifols for Failure to Publish Audited Accounts | Companies

Moody’s decided to put rating Grifols is under review for a possible cut due to lower cash flows and a delay in publishing audited reports, the risk assessment agency said in a report on Tuesday.

Grifols has a corporate family rating of B2. Previously, the rating outlook was negative. rating Corporate Family is a category Moody’s uses for speculatively rated issuers that evaluates a company’s ability to meet all of its financial obligations without regard to types of debt.

Moody’s decision is also based on the fact that Grifols has several debts coming due: a bond in February 2025, another in May 2025 and a line of credit. mixing in the amount of $1 billion in November 2025.

The sale of a 20% stake in Shanghai RAAS and the repayment or refinancing of debt in 2025 creates “execution risks,” the firm said. “Considerations particularly related to Grifols’ risk management, the predictability of its financial results and organizational complexity were the levers for today’s decision,” Moody’s added.

The rating review will focus on three aspects: Grifols’ completion of the audit of its accounts, plans to address its 2025 debt maturities and liquidity profile over the next 12-18 months, and an assessment of its earnings outlook and cash generation in 2024 and beyond.

As of December 31, Grifols had liquidity of EUR 526 million, with a further EUR 560 million pending drawdown of the credit line. mixing in the amount of 1000 million. In addition, he had financial obligations of 1,000 million euros (700 million in loans, 80 million in debt to GIC and 100 million in leases. Next year he faces the payment of two of his bonds totaling 1,850 million euros.

The sale of Shagai RAAS will bring Grifols about 1.6 billion euros, which the company hopes to use to reduce its debt.

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