Fitch downgrades Jubilant Pharma to "BB-" indicating higher default risk

Rating agency foresees firm's financial leverage worsening as a rise in capex will coincide with lower profitability

Fitch Ratings has downgraded Jubilant Pharma Ltd's Long-Term Issuer Default Rating (IDR) from "BB" to 'BB-' as the rise in its capital expenditure will coincide with lower profitability. This could see its financial leverage worsen beyond earlier estimates.

Fitch has also downgraded the company's senior unsecured rating and that of its $200 million 6 per cent senior unsecured notes due 2024 to 'BB-', from 'BB'.

The rating agency said in a statement that JPL's ratings have been withdrawn for commercial reasons. It will no longer provide ratings or analytical coverage on JPL.

Fitch said the downgrade follows JPL's announcement of