As refinancing risks ease, S&P affirms Glenmark Pharma's 'BB-' rating

The rating agency has a stable outlook on Glenmark Pharma's rating and also removed it from 'CreditWatch'

Standard & Poor's ( S&P) has affirmed Glenmark Pharmaceuticals Ltd's 'BB-' rating on easing of refinancing risk following syndication of a $182.5 million term loan. It removed the rating from CreditWatch. The rating agency had placed them on CreditWatch with negative implications on July 29, 2020.

The outlook on ratings is "stable". The stable outlook reflects expectation that Glenmark's operating performance will remain resilient over the next 12-18 months.

Its ratio of funds from operations (FFO) to debt ratio is expected to stay sustainably above 20 per cent, S&P said in a statement. "We also expect Glenmark to maintain sufficient surplus cash