Viatris (VTRS: Baa3 / BBB- neg / BBB): S&P Resolution Soon ?

Viatris has been on Neg Outlook by S&P since Aug 2023.

• S&P at the timed stated that their base case scenario would be for leverage to fall to 3.0-3.2x by YE2024 from 3.9x at the time.
• On 2^nd Oct 2023, Cooper Consumer Health (CVC controlled) offered $2.17b for 70% of VTRS’s over-the-counter business.
• Last month Cooper submitted amendments to the EU Commissioners to expedite the acquisition. Viatris should receive news soon.
• In Fitch’s last update, they expected $3.7bn debt reduction from Viatris driven by divestments and earnings. This should bring leverage down to the 3.0x which would enable S&P to resolve their Negative Outlook.
• VTRS have not come to the market since 2020*.
• In EUR, 1.75b matures over the next 6 months. These bonds should simply redeem without need to refinance.
• In 2023, $1.25b was paid down as it came due.
• * 2021 issues were amended bonds not fresh issuance.