Fitch Affirms Bayer Rating, Negative Outlook Amid Near-term Uncertainties
Fitch Ratings affirmed its long-term issuer default rating on Bayer (BAYN.F) at BBB with a negative outlook. The rating agency said Monday the negative outlook reflects uncertainties regarding the German life science company's near-term operational trajectory, its proposed class action settlement for the glyphosate litigation, and capital allocation priorities in the future. Fitch also flagged uncertainties about the group's final funding mix despite the visibility provided by its 3 billion-euro minority stake sale in its contraceptive business. On the other hand, the company's issuer default rating reflects Bayer's scale, diversification and market position, combined with "weaker" leverage, coverage and free cash flow.
Fitch Ratings affirmed its long-term issuer default rating on Bayer (BAYN.F) at BBB with a negative outlook.
The rating agency said Monday the negative outlook reflects uncertainties regarding the German life science company's near-term operational trajectory, its proposed class action settlement for the glyphosate litigation, and capital allocation priorities in the future.
Fitch also flagged uncertainties about the group's final funding mix despite the visibility provided by its 3 billion-euro minority stake sale in its contraceptive business.
On the other hand, the company's issuer default rating reflects Bayer's scale, diversification and market position, combined with "weaker" leverage, coverage and free cash flow.