Fitch assigns 'BB' rating to Glenmark's proposed US dollar-denominated senior unsecured notes

Fitch Ratings on Tuesday said it has assigned Glenmark Pharmaceuticals Ltd's proposed US dollar-denominated senior unsecured notes 'BB' rating with a stable outlook. "Fitch Ratings has assigned a rating of 'BB' to Glenmark Pharmaceuticals Ltd's (BB/Stable) proposed US dollar-denominated senior unsecured notes," it said in a statement.

According to Fitch, 'BB' ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time. However, business or financial flexibility exists that supports the servicing of financial commitments. The proposed notes, it said, are rated at the same level as Glenmark's issuer default rating because they will represent its direct, unconditional, unsecured and unsubordinated obligations.

Glenmark's credit profile, the rating agency said, remains broadly unaffected by the proposed issuance, as the company intends to use the proceeds to repay debt.