S&P Global Rating said refinancing risks for Glenmark Pharma have subsided with the company raising $182.5 million in November 2020 via a term loan to redeem a similar amount of its $200 million senior unsecured notes due 2 August 2021.

The company's stable operating cash flows and limited capital spending requirements over the next two years will support its deleveraging.

S&P said it is affirming its long-term issuer credit rating on Glenmark and the issue rating on the company's $200 million senior unsecured notes at 'BB-'. At the same time, it is removing all the ratings from CreditWatch, where we had placed them with negative implications on 29 July 2020.

“The stable outlook on Glenmark reflects our expectation that the company's operating performance will remain resilient over the next 12-18 months such that its ratio of funds from operations (FFO) to debt stays sustainably above 20%. We also expect Glenmark to maintain sufficient surplus cash and access to credit lines to sustain its adequate liquidity status during this period,” S&P said.

Shares of Glenmark Pharmaceuticals slipped 1.26% to Rs 474.50 on BSE.

The drug maker's consolidated net profit slipped 8.4% to Rs 233.99 crore on 5.2% increase in net sales to Rs 2,908.12 crore in Q2 September 2020 over Q2 September 2019.

Glenmark Pharmaceuticals is a global research-led pharmaceutical company with presence across generics, specialty and over-the-counter (OTC) business with operations in over 50 countries. Glenmark's key therapy focus areas globally are respiratory, dermatology and oncology.

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