Grifols: Cross Asset Moves - Awaiting CNMV Response

Grifols (GRF SM) cross-asset moves: equity one of weakest in SXXP, cash curve tightening.

• Grifols results (on 29-Feb) results last week were solid at the revenue level but missed at net income which drove the equity lower. However, credit metrics (FCF and leverage) were both better than expected.
• Most importantly for near-term credit is the deal to sell S-RAAS to Haier Group. Here, mgmt confirmed that due diligence had been completed and the deal was now subject to normal regulatory approval. Mgmt was clear that the ’25 maturities would be dealt with following this sale.
• News today of some small shareholding moves has, apparently, spooked equity markets again but, positively, its credit stack is broadly tighter today. Our view is that the equity will remain immensely volatile, especially ahead of hearing back from the Spanish regulator over its recent questioning of the firm