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France-Based Cegedim Downgraded To 'BB' On High Leverage And Weaker-Than-Forecast Operating Margins; Outlook Negative Product Image

France-Based Cegedim Downgraded To 'BB' On High Leverage And Weaker-Than-Forecast Operating Margins; Outlook Negative

  • ID: 1784341
  • May 2011
  • Standard & Poors

Abstract
French health care software and services firm Cegedim S.A. has reported lower operating margins and free cash flow generation in 2010 than we forecast. Adjusted leverage is above our previous maximum forecast of 3.5x and we do not anticipate a material reduction in 2011. We are therefore lowering our long-term corporate credit and issue ratings on Cegedim to 'BB' from 'BB+'. The negative outlook reflects the possibility that we could lower the ratings again if free cash flow generation does not improve or if leverage approaches 4x. LONDON (Standard & Poor's) May 10, 2011--Standard & Poor's said today that it lowered to 'BB' from 'BB+' its long-term corporate credit rating on French health care software and services provider Cegedim S.A....

Companies mentioned in this report are: Cegedim S.A.
Action: Downgraded
Action: Outlook: Negative

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

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