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

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

  • ID: 1784342
  • 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. On May 10, 2011, Standard & Poor's lowered to 'BB' from 'BB+' its long-term corporate credit rating on French health care software and services provider Cegedim S.A. The outlook is negative. At the...

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

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Product Type: Research Update
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