10th Sep 2021 19:28
(Alliance News) - Moody's Investors Service on Friday upgraded the corporate family rating of UK wound dressings maker Convatec Group PLC to Ba2 from Ba3.
The ratings agency has changed ConvaTec's outlook to stable from positive.
The ratings were upgraded amid "material" progress in ConvaTec's transformation and its track record of improved sales execution, Moody's said.
In addition, Moody's said it expects that the company's earnings before interest, tax, depreciation and amortization will sustain a return to growth, which will speed up deleveraging, alongside amortising debt. Moody's also highlighted the FTSE 250-listed company's solid and consistent cash flow generation.
The stable outlook, meanwhile, reflects Moody's expectation that ConvaTec will generate sustained organic revenue growth broadly in line with its markets, with Ebitda growing at least at the level of revenue from 2022.
The outlook further assumes that the company will maintain good liquidity and will not pursue debt-funded acquisitions or increase its dividend payout ratio.
ConvaTec shares closed 0.4% lower in London on Friday at 225.90 pence each.
By Evelina Grecenko; [email protected]
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