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Moody's upgrades Horizon Pharma's corporate family rating

Moody's on March 20 upgraded the corporate family rating of Dublin-based Horizon Pharma PLC's U.S. unit Horizon Pharma USA Inc. to Ba3 from B2.

The outlook on the ratings is stable.

Moody's said the upgrade reflects significant debt repayments with proceeds from a public equity offering.

The rating agency also raised the probability of default rating to Ba3-PD from B2-PD, the senior secured rating to Ba1 from Ba2 and the senior unsecured rating to B1 from B3. Moody's affirmed the speculative grade liquidity rating at SGL-1.

Moody's said the Ba3 corporate family rating reflects the company's modest size compared to other companies in the global pharmaceutical industry with annual revenue of about $1.2 billion.

The upgrade in the corporate family rating considers the good growth outlook for Horizon's key drugs like Krystexxa, Ravicti and Procysbi, and also takes into account the agency's expectation for the regulatory approval of teprotumumab in thyroid eye disease, which has strong sales potential based on unmet medical need.

Moody's said the stable outlook reflects its expectation for solid growth in Horizon's orphan disease and rheumatology products and gross debt/EBITDA sustained below 4.5x.