Fitch upgrades Jubilant Pharma to BB with stable outlook

Fitch Ratings on Thursday upgraded Jubilant Pharma Ltd's (JPL's) long-term foreign currency issuer default rating to BB from BB-minus.

Fitch Ratings on Thursday upgraded Jubilant Pharma Ltd's (JPL's) long-term foreign-currency issuer default rating to BB from BB-minus. It affirmed its senior unsecured rating and rating on senior unsecured notes at BB. The outlook is stable. The IDR has been removed from rating watch positive, on which it was placed on November 12, 2019.

The upgrade follows completion of demerger of life science ingredient business of its parent Jubilant Pharmova Ltd (earlier known as Jubilant Life Sciences Ltd) into a separate entity and transfer of debt and cash. Fitch said the upgrade reflects improvement in business profile, which will outweigh a slight loss of diversification.

JPL's limited dependence on generic formulations and favorable market position in specialty pharmaceutical-focused segments along with a strong financial profile continues to underpin its credit profile. Fitch said this is despite the company's small size and high degree of regulatory risk arising from limited production facility diversification.

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