GRFS - Grifols Gets Downgraded: Fitch S&P Flag Cash Flow Concerns At Pharma Company | Benzinga
Grifols SA (NASDAQ:GRFS) shares were down more than 9.1% on Thursday after credit rating agencies Fitch and S&P slashed their ratings for the troubled pharmaceutical company.
What Happened: Grifols shares are among the worst performers in Spain’s blue-chip index.
Fitch cited “slower-than-expected deleveraging” as the reason for the downgrade, emphasizing the significant shortfall in free cash flow generation for 2023 and 2024, Reuters noted.
However, there’s a glimmer of hope as the pending sale of Grifols’ 20% stake in Shanghai RAAS, slated to close in the first half of 2024 pending regulatory approval, could ease the refinancing pressure, according to Fitch.
Meanwhile, S&P echoed similar concerns ...