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HEALTHCARE: Eurofins (ERFFP: Baa3/BBB-): Fitch Lease Accounting

HEALTHCARE

Potentially a positive

  • Fitch affirmed Eurofins last night and removed it from Under Criteria Observation
  • Fitch has changed how it accounts for leases at ERFFP which will result in a 0.6x improvement (€950m) which gets the company closer to the 2.5x rating sensitivity for leverage.
  • The company's stated leverage corridor is 1.5x-2.5x which equates to 2x-3x as per Fitch.
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Potentially a positive

  • Fitch affirmed Eurofins last night and removed it from Under Criteria Observation
  • Fitch has changed how it accounts for leases at ERFFP which will result in a 0.6x improvement (€950m) which gets the company closer to the 2.5x rating sensitivity for leverage.
  • The company's stated leverage corridor is 1.5x-2.5x which equates to 2x-3x as per Fitch.