trending Market Intelligence /marketintelligence/en/news-insights/trending/zsSfs31D25vheHNPmWgLpA2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

S&P lowers Diplomat Pharmacy's ratings; outlook negative

Gauging Supply Chain Risk In Volatile Times

S&P Global Market Intelligence

Cannabis: Hashing Out a Budding Industry

Segment

IFRS 9 Impairment How It Impacts Your Corporation And How We Can Help

The Market Intelligence Platform


S&P lowers Diplomat Pharmacy's ratings; outlook negative

S&P Global Ratings lowered Diplomat Pharmacy Inc.'s issuer credit rating to B from B+, citing higher expected leverage in 2019.

The outlook on the rating is negative, signifying that Ratings may further downgrade the company's credit profile.

Flint, Mich.-based Diplomat Pharmacy operates as a specialty pharmacy and pharmacy benefit manager, or PBM. It is the fifth-largest specialty pharmacy in the U.S.

Ratings said the downgrade reflects its expectations that Diplomat Pharmacy's EBITDA will decline sharply in 2019, with financial leverage to exceed 6x from the previous projection of about 4x.

The rating agency is skeptical that Diplomat Pharmacy will have a material recovery beyond 2019 due to its moderate scale, higher-than-expected competition and significant management turnover which increases strategic and financial uncertainties. There is also a significant regulatory risk in the PBM sector that could hurt the company's profitability, Ratings noted.

S&P Global Ratings said the negative outlook shows the elevated potential for downgrade if the company's operating metrics continue to deteriorate materially beyond its guidance and the rating agency's current expectations.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.