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Corps > Consumer Non Cyclicals > Flashcards

Consumer Non Cyclicals Flashcards

1
Q

BRUNSWICK CORP (BC)

A

Global leader in marine recreation, offering products and services across marine propulsion, parts and accessories, and boats. It differentiates itself through technological innovation and a broad product portfolio. Brunswick’s strengths include strong brand recognition and a diversified revenue base. Its weaknesses include sensitivity to economic cycles and potential supply chain disruptions

Baa2/BBB-(Pos)/BBB
Consumer Products - Americas
$1.70bn in index across 4 issues

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2
Q

COLGATE-PALMOLIVE CO (CL)

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Operates in the consumer goods sector, specializing in oral care, personal care, home care, and pet nutrition products. It is well-known for its strong brand portfolio and global market presence. Colgate-Palmolive’s strengths include stable cash flows and a strong market position. However, it faces competitive pressures and exposure to currency fluctuations

Aa3/A+
Consumer Products - Americas
$4.10bn in index across 8 issues

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3
Q

HASBRO INC (HAS)

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Leading toy and game company with a portfolio of iconic brands such as MAGIC: THE GATHERING, DUNGEONS & DRAGONS, and NERF. It is positioned as a major player in the entertainment and gaming industry. Hasbro’s strengths include strong brand equity and diversified revenue streams6. Its weaknesses include reliance on consumer spending and exposure to seasonal sales fluctuations

Baa2/BBB/BBB-
Consumer Products - Americas
$3.38bn in index across 6 issues

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4
Q

KENVUE INC (KVUE)

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World’s largest pure-play consumer health company, offering products under brands like Aveeno, BAND-AID, and Tylenol. It is uniquely positioned at the intersection of healthcare and consumer goods. Kenvue’s strengths include a strong brand portfolio and stable revenue from essential health products. However, it faces regulatory risks and competition from other consumer health companies

A1/A
Consumer Products - Americas
$7.00bn in index across 7 issues

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5
Q

KIMBERLY-CLARK CORPORATION (KMB)

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Global leader in personal care and consumer tissue products, with brands like Huggies, Kleenex, and Scott. It is well-positioned due to its strong brand recognition and global reach. Kimberly-Clark’s strengths include consistent cash flow and a diversified product portfolio. Its weaknesses include exposure to raw material cost volatility and intense competition

A2/A
Consumer Products - Americas
$6.70bn in index across 13 issues

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6
Q

MATTEL INC (MAT)

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High-performing toy company with a portfolio of well-known brands such as Barbie, Hot Wheels, and Fisher-Price. It differentiates itself through its focus on intellectual property and brand-driven strategy. Mattel’s strengths include strong brand equity and a diversified product portfolio. However, it faces challenges such as reliance on consumer spending and exposure to seasonal sales

Baa3/BBB/BBB-
Consumer Products - Americas
$2.10bn in index across 4 issues ($1.80bn 144a)

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7
Q

PROCTER & GAMBLE CO (PG)

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Global consumer goods company with a wide range of products in categories like beauty, grooming, health care, and home care. It is known for its strong brand portfolio and market leadership. Procter & Gamble’s strengths include stable cash flows and a diversified product range. Its weaknesses include exposure to currency fluctuations and intense competition

Aa3/AA-
Consumer Products - Americas
$16.29bn in index across 21 issues

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8
Q

REYNOLDS CONSUMER PRODUCTS LLC (REYN)

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Acquired by BATSLN

Acquired
Consumer Products - Americas
No USD Bonds Outstanding

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9
Q

SC JOHNSON & SON INC (SCJOHN)

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Privately held company specializing in household cleaning products, air care, pest control, and home storage. It is well-known for its strong brand portfolio and global reach. SC Johnson’s strengths include a stable cash flow stream and strong brand recognition. However, it faces challenges such as exposure to raw material cost volatility and competitive pressures

A-/BBB+
Consumer Products - Americas
$1.81bn in index across 3 issues ($1.81bn 144a)

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10
Q

WHIRLPOOL CORPORATION (WHR)

A

A leading kitchen and laundry appliance company with a strong portfolio of brands including Whirlpool, KitchenAid, and Maytag. It is well-positioned in the home appliance industry due to its focus on innovation and consumer needs. Whirlpool’s strengths include a robust market presence and consistent cash flow generation. However, it faces challenges such as intense competition and exposure to raw material price fluctuations.

The company remains focused on delevering to 2x by FY26 driven by debt paydown – expects 3.5x leverage by YE24 and expects $400-$500M in asset sale proceeds (primarily India). Remain cautious on the credit driven by commentary from large home retailers in the US in regards to promotional activity for appliances driving unclear timing for the recovery in price/volume metrics and ability to fully delever; countering this is the additional cost cutting activities to be undertaken in ’24 ($300-$400M) and the sale proceeds to be used to reduce debt.

Baa2/BBB-/BBB
Consumer Products - Americas
$2.90bn in index across 7 issues

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11
Q

ARCHER DANIELS MIDLAND CO (ADM)

A

Operates in the agribusiness sector, focusing on the processing and distribution of agricultural products like corn, soybeans, and wheat. It is well-known for its extensive global network and strong market position. ADM’s strengths include robust cash flow generation and a diversified product portfolio. However, it faces risks from commodity price volatility and regulatory changes

A2/A/A
Food & Beverage - Americas
$6.53bn in index across 11 issues

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12
Q

BROWN-FORMAN CORPORATION (BFB)

A

Producer and marketer of alcoholic beverages, with brands like Jack Daniel’s, Woodford Reserve, and Old Forester. It is positioned as a premium beverage company with a strong global presence. Brown-Forman’s strengths include strong brand equity and consistent revenue growth. However, it faces risks from regulatory changes and market competition

A1/A-
Food & Beverage - Americas
$1.45bn in index across 3 issues

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13
Q

BUNGE LIMITED FINANCE CORPORATION (BG)

A

Operates in the agribusiness and food industry, focusing on oilseed processing, grain trading, and food production. It is well-positioned due to its global scale and strong relationships with farmers. In the middle of a merger with the grain division of Glencore Plc. Bunge’s strengths include robust cash flow generation and a diversified product portfolio. However, it faces risks from commodity price volatility and regulatory changes

The transaction with Viterra brings several positives for the company including: complementary assets, product and geographic expansion, smoother cycles and potential cost synergies ($250mm). From a RelVal standpoint, we think BG bonds should compress on ADM bonds (preannouncement ~ +70-75bps), which implies solid upside and to trade through them as the company integrates the Viterra assets. The regulatory process is moving along and expect BG to either issue new bonds to take out the Viterra bonds or amend them such that they will be pari passu with existing BG bonds. As such, with Viterra bonds which are trading 25bps back of BG, I view it as an attractive way to play BG.

Baa1/BBB+(Pos)
Food & Beverage - Americas
$2.90bn in index across 4 issues

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14
Q

CAMPBELL SOUP COMPANY (CPB)

A

Operates in the food and beverage industry, focusing on soups, simple meals, beverages, and snacks. It is well-positioned in North America with iconic brands like Campbell’s, Pepperidge Farm, and V8. Campbell’s strengths include a strong brand portfolio and stable cash flows. However, it faces challenges such as exposure to commodity price volatility and intense competition

Baa2/BBB-/BBB
Food & Beverage - Americas
$5.20bn in index across 8 issues

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15
Q

CARGILL INC (CARGIL)

A

Global leader in agribusiness, providing products and services in food, agriculture, financial, and industrial sectors. Largest privately owned company in America; crucial supplier to brands such as Coca-Cola and McDonalds. It is well-known for its extensive global network and strong relationships with farmers. Cargill’s strengths include robust cash flow generation and a diversified product portfolio. However, it faces risks from commodity price volatility and regulatory changes

A2/A/A
Food & Beverage - Americas
$9.10bn in index across 15 issues ($9.10bn 144a)

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16
Q

COCA-COLA CO (KO)

A

Global beverage leader, offering a wide range of non-alcoholic beverages, including its flagship Coca-Cola brand. It is well-positioned due to its strong brand recognition and extensive distribution network. Coca-Cola’s strengths include stable cash flows and a diversified product range. Its weaknesses include exposure to currency fluctuations and competitive pressures

A1/A+
Food & Beverage - Americas
$23.84bn in index across 21 issues

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17
Q

CONAGRA BRANDS INC (CAG)

A

Major player in the packaged foods industry, offering a wide range of products under well-known brands like Healthy Choice, Marie Callender’s, and Hunt’s. It differentiates itself through innovation and a strong brand portfolio. Conagra’s strengths include stable cash flows and a diversified product range. Its weaknesses include exposure to commodity price fluctuations and intense competition

The rate of decline in both refrigerate and frozen and grocery and snacks has improved though it is still negative. Additionally, CAG’s plans to delever to 3.0x is a positive but it will take ~2 years to achieve 0.5x

Baa3/BBB-/BBB-
Food & Beverage - Americas
$6.48bn in index across 8 issues

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18
Q

CONSTELLATION BRANDS INC (STZ)

A

Leading international producer and marketer of beer, wine, and spirits, with popular brands like Corona, Modelo, and Robert Mondavi. It is positioned as a high-end beverage company with a strong market presence. Constellation’s strengths include strong brand equity and consistent revenue growth. However, it faces risks from regulatory changes and market competition

Solid growth in beer segment (81% of revs – Corona, Modelo, Pacifico) countering weakness in the wine & spirits segment (19% - Kim Crawford, Robert Mondavi, SVEDKA) driven by reduced consumer demand post Covid for W&S. View the credit as a solid performer, strong commitment to IG and expect modest delevering (STZ target of 3.0x vs 3.2x 4Q24). Moody’s upgrade possible, but not expected in near term (approaching Moody’s metrics for upgrade). Should trade broadly around KDP

Baa3(Pos)/BBB
Food & Beverage - Americas
$10.75bn in index across 18 issues

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19
Q

DARLING GLOBAL FINANCE BV (DAR)

A

Special purpose entity created to issue debt securities for Darling Ingredients Inc., which processes food waste into valuable ingredients. This structure supports Darling’s financial strategy by providing liquidity for acquisitions and refinancing existing debt, enhancing their global operations and market reach.

Leading market position as a globally diversified ingredient processor that has benefited from increasing demand for low-carbon fuels which in turn supports higher fat prices and profitability. Renewable diesel JV expected to contribute more to Darling’s cash flows over the near term. Capital allocation focused on debt reduction and achieving leverage of 2.5x

Ba2/BB+
Food & Beverage - Americas
$1.50bn in index across 2 issues

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20
Q

GENERAL MILLS INC (GIS)

A

Operates in the consumer foods industry, offering products like cereals, snacks, and pet foods under brands such as Cheerios, Betty Crocker, and Blue Buffalo. It is well-known for its strong brand portfolio and market presence. General Mills’ strengths include stable cash flows and a diversified product range. However, it faces challenges from changing consumer preferences and commodity price volatility

Baa2/BBB
Food & Beverage - Americas
$7.77bn in index across 12 issues

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21
Q

HERSHEY COMPANY THE (HSY)

A

Leading confectionery company, known for its chocolate and non-chocolate confectionery products, including Hershey’s, Reese’s, and Kit Kat. It is positioned as a major player in the U.S. snacking market. Hershey’s strengths include strong brand equity and consistent revenue growth. However, it faces risks from commodity price fluctuations and market competition

A1/A
Food & Beverage - Americas
$3.25bn in index across 9 issues

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22
Q

JBS USA LUX SA (JBSSBZ)

A

Global leader in meat processing, offering beef, pork, and chicken products. It differentiates itself through its scale and operational efficiency. JBS USA’s strengths include strong cash flow generation and a diversified customer base. However, it faces risks from commodity price volatility and regulatory changes

Diversified by both product and geography creates durable business model. On the back of strong 1Q results spreads compressed almost 20bps. Expect levels will remain stable until there is greater clarity in regard to the pending potential US listing, which could act as a catalyst for another tightening cycle (update on listing expected in the Fall).

Baa3/BBB-/BBB-
Food & Beverage - Americas
$12.64bn in index across 12 issues

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23
Q

KELLANOVA (K)

A

Formerly known as Kellogg Company, is a leader in global snacking, international cereal, and North American frozen foods, with brands like Pringles, Cheez-It, and Eggo. It is well-positioned due to its strong brand portfolio and market presence. Kellanova’s strengths include stable cash flows and a diversified product range. Its weaknesses include exposure to commodity price fluctuations and intense competition

Baa2(Pos)/BBB(Pos)
Food & Beverage - Americas
$4.43bn in index across 8 issues

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24
Q

KEURIG DR PEPPER INC (KDP)

A

Operates in the beverage industry, offering a wide range of hot and cold beverages, including coffee, soft drinks, and juices. It is well-known for its strong brand portfolio and innovative products. Keurig Dr Pepper’s strengths include stable cash flows and a diversified product range. However, it faces challenges from competitive pressures and commodity price volatility

Baa1/BBB
Food & Beverage - Americas
$12.00bn in index across 18 issues

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25
Q

KRAFT HEINZ FOODS CO (KHC)

A

Operates in the food and beverage industry, offering a wide range of products under iconic brands like Kraft, Heinz, and Oscar Mayer. It is well-known for its strong brand recognition and extensive distribution network. Kraft Heinz’s strengths include stable cash flows and a strong market position. Its weaknesses include exposure to commodity price volatility and the need for continuous innovation

One of the largest F&B companies with a portfolio of leading packaged food brands and scale advantages. Achieved 3.0x net leverage target; expect focus on shareholder friendly activities; potential sale Oscar Mayer (maybe bolt-on M&A). Should trade behind SYY, inline with GIS and inside of CPB.

BBB/BBB
Food & Beverage - Americas
$16.16bn in index across 16 issues

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26
Q

MARS INC (MARS)

A

Global leader in confectionery, pet care, and food products, with brands like M&M’s, Pedigree, and Uncle Ben’s. It is well-positioned due to its strong brand portfolio and market presence. Mars’ strengths include robust cash flow generation and a diversified product range. However, it faces risks from commodity price volatility and market competition

A1(Neg)/A+(Neg)
Food & Beverage - Americas
$9.40bn in index across 14 issues ($9.40bn 144a)

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27
Q

MOLSON COORS INTERNATIONAL LP (TAP)

A

Global beverage company known for its beer brands like Coors Light, Miller Lite, and Blue Moon. It is positioned as one of the largest brewers in the world with a diverse product portfolio. Molson Coors’ strengths include strong brand recognition and a broad geographic presence. However, it faces challenges from changing consumer preferences and regulatory risks

Baa2(Pos)/BBB
Food & Beverage - Americas
$4.90bn in index across 3 issues

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28
Q

MONDELEZ INTERNATIONAL INC (MDLZ)

A

Operates in the global snacking industry, offering products like biscuits, chocolate, and gum under brands such as Oreo, Cadbury, and Trident. It is well-positioned due to its strong brand portfolio and global reach. Mondelez’s strengths include stable cash flows and a diversified product range. Its weaknesses include exposure to currency fluctuations and competitive pressures

Leading global position in biscuits/cookies and well-diversified geographically. Management is committed to IG; excess FCF used for M&A and buybacks; little ratings upside. Fundamentals strong. Could face some near-term pressure on softer consumer demand - waiting on promotions. Spreads fully reflect positives of the story.

Baa1/BBB
Food & Beverage - Americas
$6.36bn in index across 10 issues

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29
Q

PEPSICO INC (PEP)

A

Global food and beverage leader, offering products like snacks, beverages, and nutrition products under brands such as Pepsi, Lay’s, and Quaker. It is well-known for its strong brand portfolio and extensive distribution network. PepsiCo’s strengths include stable cash flows and a diversified product range. Its weaknesses include exposure to currency fluctuations and competitive pressures

A1/A+
Food & Beverage - Americas
$29.51bn in index across 40 issues

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30
Q

PILGRIMS PRIDE CORP (PPC)

A

One of the world’s largest poultry producers, supplying chicken products to retailers and foodservice distributors. It differentiates itself through its scale and operational efficiency. Pilgrim’s Pride’s strengths include strong cash flow generation and a diversified customer base. However, it faces risks from commodity price volatility and regulatory changes

Leading producer of fresh/prepared chicken products in the US and Mexico. JBS owns ~82% of outstanding shares; unclear if/when JBS does a US stock listing whether it will buy all remaining PPC shares. Chicken cycle improving and should benefit results (margins, FCF). Net leverage of ~2.5x is inline with target (between 2-3x). Prefer JBS with its protein diversification

Ba2/BBB-/BBB-
Food & Beverage - Americas
$3.39bn in index across 4 issues

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31
Q

POST HOLDINGS INC (POST)

A

Consumer packaged goods holding company with a diverse portfolio, including ready-to-eat cereals, pet foods, and refrigerated retail products. Their business model emphasizes both organic growth and strategic acquisitions, focusing on cash flow generation and portfolio optimization to drive shareholder value.

Primarily branded cereal products, foodservice (egg and potato) and refrigerated retail (side dish, egg, cheese, sausage). Mgmt. intentionally runs a heavy balance sheet (avg. net lvg. of 5.3x over the L5Y, currently 4.5x) and is acquisitive. Governor on any debt funded M&A is maintaining current credit ratings. Neutral on Post Holdings given notes trade through HY food & Bev Index (6.8% YTW) and inside BB index at 6.2%. Wouldn’t necessarily go underweight despite M&A risk, as credit has significant scale and diversification for a B rated issuer, strong FCF, and leadership position in core categories. Core name to own in F&B sector

B2/B+
Food & Beverage - Americas
$5.60bn in index across 5 issues

32
Q

PRIMO WATER HOLDINGS INC (PRMWCN)

A

Provides bottled water and water filtration services across North America. Their recurring revenue model, often described as “razor-razorblade,” ensures steady income from water dispensers and refill services. Financially, Primo Water’s focus on sustainability and health positions them well for long-term growth.

Sells drinking water to residential and commercial customers. Announced an all-stock merger with BlueTriton (purchased from Nestle in 2021 for $4.3Bn by One Rock Capital and Metropoulos), with the transaction expected to close in 1H25.Combined company will have revenue of $6.5B and Adjusted EBITDA of $1.5B, including $200MM in estimated cost synergies. FTC risks with deal given combined entity will have significant market share in the HOD segment, while combined retail will only be 5%. TRIWAT bonds at 6.8% yield look attractive relative to Primo trading inside of BBs and Post Holdings

B1 *-/B+ *+
Food & Beverage - Americas
$0.75bn in index across 1 issues

33
Q

SYSCO CORPORATION (SYY)

A

The global leader in foodservice distribution, providing food products and related services to restaurants, healthcare, and educational facilities. It is well-positioned due to its extensive distribution network and strong market presence. Sysco’s strengths include stable cash flows and a diversified customer base. Its weaknesses include exposure to economic cycles and competitive pressures

U.S. market leader in foodservice distribution. Near-term shift into international markets could hamper margins, but longer term should improve margins driven by scale. Sysco’s leverage is around its target (2.5x-2.75x) and as a result would anticipate modestly higher leverage due to M&A in FY24. Trades in the middle of the F&B group which is FV

Baa1/BBB/BBB
Food & Beverage - Americas
$10.18bn in index across 16 issues

34
Q

TYSON FOODS INC (TSN)

A

One of the world’s largest food companies, specializing in chicken, beef, and pork products. It differentiates itself through its scale and operational efficiency. Tyson’s strengths include strong cash flow generation and a diversified product portfolio. However, it faces risks from commodity price volatility and regulatory changes

Baa2(Neg)/BBB/BBB
Food & Beverage - Americas
$7.90bn in index across 9 issues

35
Q

Abbott Laboratories (ABT)

A

Global healthcare company providing a wide range of products in diagnostics, medical devices, nutrition, and branded generic pharmaceuticals. It is well-positioned due to its diversified business model and strong market presence in over 160 countries. Abbott’s strengths include stable cash flows, a diversified product portfolio, and strong investment-grade credit ratings. However, it faces challenges such as high R&D expenditure and exposure to regulatory changes.

Aa3/AA-
Health Care - Americas
$10.79bn in index across 10 issues

36
Q

ALCON FINANCE CORP (ALCSW)

A

Global leader in eye care, offering a broad portfolio of products in surgical and vision care. It is well-positioned due to its strong market presence and innovation in eye care solutions, serving over 140 countries. Alcon’s strengths include stable revenue streams and investment-grade credit ratings, which enhance its creditworthiness. However, it faces risks from regulatory changes and competition in the medical devices sector

Baa1/BBB+
Health Care - Americas
$4.05bn in index across 6 issues ($4.05bn 144a)

37
Q

BAXTER INTERNATIONAL INC (BAX)

A

Operates in the healthcare sector, providing essential products and services across hospitals and clinics globally. It is known for its strong presence in critical care, nutrition, and renal products. Baxter’s strengths include a diversified product portfolio and stable cash flows. However, it faces challenges such as significant debt levels and exposure to regulatory risks

Sale of kidney segment to Carlyle $3.8bn should help to delever to low 3x range but still above target (2.75x). BAX still faces a slower growing Hillrom segment driven by accelerated sales during Covid of long lasting durable products. Remain cautious that BAX will look for additional M&A to accelerate growth soon after the sale of the kidney segment, potentially relevering. BAX has $3bn due in ‘24.

Baa2/BBB(Neg)
Health Care - Americas
$7.33bn in index across 8 issues

38
Q

BAYLOR SCOTT & WHITE HOLDINGS (BSWHLD)

A

Holding company providing healthcare services through its subsidiaries. It is well-positioned due to its strong market presence in Texas and comprehensive healthcare services. Baylor Scott & White’s strengths include stable cash flows and a strong market position. However, it faces challenges such as regulatory risks and exposure to economic cycles.

Aa3/AA-
Health Care - Americas
$2.03bn in index across 4 issues

39
Q

BECTON DICKINSON AND COMPANY (BDX)

A

Global medical technology company specializing in medical devices, laboratory equipment, and diagnostic products. It is well-positioned due to its extensive product range and innovation in healthcare solutions. Becton Dickinson’s strengths include strong market leadership and consistent revenue growth. Its weaknesses include high R&D expenditure and exposure to regulatory changes

Diversified, recurring revenue streams in MedTech. PF net leverage of 3.1x (Edwards M&A) - above 2.5x target. BDX should benefit from a return of the Alaris Infusion pumps. Cap raise of $3.2B for M&A substantially complete - removes technical pressure. Prefer BDX to BAX given leverage profiles (PF 1x+ lower) and BDX likely to delever towards target over next 12-18months.

Baa2/BBB/BBB
Health Care - Americas
$9.59bn in index across 11 issues

40
Q

BOSTON SCIENTIFIC CORPORATION (BSX)

A

Develops and markets medical devices used in various interventional medical specialties. It is positioned as a leader in minimally invasive medical technologies. Boston Scientific’s strengths include a strong product pipeline and consistent revenue growth. However, it faces risks from regulatory scrutiny and competition in the medical devices market

Leading market share in Cardiovascular. Management is committed to BBB+ ratings and targets 2.25-2.5x gross leverage (current leverage 2.4x ). Strong EBITDA growth will help reduce leverage. Bolt-on M&A is #1 use of FCF. Axonics M&A funded (Europe) and no ‘24 bond maturities, removes nearterm refi headwind. Tight spreads leave limited upside

Baa1/BBB+/BBB+
Health Care - Americas
$3.29bn in index across 6 issues

41
Q

Cardinal Health (CAH)

A

Leading healthcare services and products company, specializing in the distribution of pharmaceuticals and medical products. It is well-positioned due to its extensive distribution network and strong market presence in over 30 countries. Cardinal Health’s strengths include stable cash flows and a diversified product portfolio, which enhance its creditworthiness. However, it faces challenges such as regulatory risks and competitive pressures in the healthcare distribution sector

Top 3 drug distributor (MCK, COR). Razor thin margins; smaller scale; recent loss of Optum. Solid 4Q and guidance.

Baa2(Pos)/BBB(Pos)/BBB(Pos)
Health Care - Americas
$4.58bn in index across 8 issues

42
Q

CENCORA INC (COR)

A

Formerly AmerisourceBergen, is a global healthcare solutions leader, driving innovative partnerships to improve product access and efficiency. It is well-positioned due to its extensive distribution network and strong market presence. Cencora’s strengths include robust revenue growth and a diversified product portfolio. Its weaknesses include exposure to regulatory changes and competitive pressures

Baa2(Pos)/BBB+/A-
Health Care - Americas
$3.75bn in index across 6 issues

43
Q

CHARLES RIVER LABORATORIES INTERNATIONAL INC (CRL)

A

Provides essential products and services to support pharmaceutical and biotechnology research. Their business model revolves around offering comprehensive outsourcing solutions for drug discovery and development. Financially, Charles River benefits from strong client demand and a resilient business model that supports consistent revenue growth.

Largest segment (early-stage CRO business) seeing greenshoots in demand after recent higher-than -normal cancellations, start dates delayed and B2B ratio <1.0x. Funding environment for small bio-techs expected to stabilize in ‘24. 2.2x net leverage, leadership position as largest provider of pre-clinical services globally, with strong margins/FCF generation compare favorably with CRO peers. Trades well inside the HY BB index hence underweight, but generally stable business

Ba2/BB(Pos)/BBB-
Health Care - Americas
$1.50bn in index across 3 issues

44
Q

CHS/COMMUNITY HEALTH SYSTEMS INC (CYH)

A

Owns and operates general acute care hospitals across the U.S., offering a wide range of healthcare services. Their business model focuses on providing accessible healthcare through a network of hospitals and outpatient facilities. Financially, CHS is working on improving operational efficiency and reducing debt to enhance financial stability.

Credit Outlook revised to Improving on growing patient volume, lower contract labor utilization, asset sales, declining leverage, and extension of RBL/maturity ladder. CYH still faces potential concerns with upcoming presidential election/strong exchange growth/potential for enhanced subsidies to expire which make up ~7.3% of EBITDA. Postively, management has completed $280MM of its $720MM planned asset sales, pushed ABL maturity out to 2028, and pro forma leverage down 0.5x to 6.7x and EBITDA margins up ~120bps on sale of Pennsylvania hospitals that generated -$45MM EBITDA. 2L and unsecureds look attractive relative to Healthcare space and Lifepoint despite the high leverage and potential headwinds above. Prefer staying up in quality but acknowledge potentail for outperformance down capital structure with further asset sales. Franklin owns 80% of the 6 7/8 notes and 12% of CYH’s total debt. Neutral from UW

Caa3/CCC-/CCC-
Health Care - Americas
$11.29bn in index across 9 issues

45
Q

CIGNA GROUP (CI)

A

Global health services company offering insurance and related products and services. It is well-known for its strong market presence and comprehensive healthcare solutions. Cigna’s strengths include stable cash flows and a diversified revenue base. Its weaknesses include exposure to regulatory changes and competitive pressures in the healthcare insurance market

CI is well positioned to continue posting solid results driven by the stable PBM business (75% of revs). Largest risk is M&A and secondarily shareholder friendly activities. CI has made clear that it is willing to make a transformative transaction (I.e. HUM ~$70B, which fell apart), but expect CI to sit tight in the near term given regulatory challenge for a large transaction and CI caution on Medicare Advantage (MA) in the near term. Potential M&A likely in the medical information segment - bite size rather than transformational. On the shareholder friendly front, the company has a $10bn share buyback (YTD $4.8bn purchased) and a $1.6B dividend. Gross leverage 2.5x

Baa1/A-/BBB+
Health Care - Americas
$28.88bn in index across 22 issues

46
Q

CVS HEALTH CORP (CVS)

A

Leading health solutions company, offering a wide range of healthcare services, including pharmacy benefits management and retail pharmacy. It is well-positioned due to its extensive network and integrated healthcare services. CVS Health’s strengths include stable cash flows and a diversified revenue base. Its weaknesses include exposure to regulatory changes and competitive pressures in the healthcare sector

Diverse revenue streams and strong market positions in health services (PBM) management (46%), retail pharmacies (28%), and health insurance (26%). Negative outlook at S&P and Moody’s, but agencies likley to provide a long leash and flexibility to delever over time. Net leverage (incl lease liabilities and opioid liability ($3.0B)) is ~4.4x by YE24. FY24 looks pressured (MA), but believe should represent tailwinds into ‘25. Cautious on operating performance in the near term

Baa2(Neg)/BBB(Neg)
Health Care - Americas
$54.97bn in index across 34 issues

47
Q

Danaher Corporation (DHR)

A

Global science and technology innovator, operating in segments such as life sciences, diagnostics, and environmental & applied solutions. It is well-positioned due to its strong market presence and the Danaher Business System (DBS), which drives continuous improvement and operational efficiency. Danaher’s strengths include robust revenue growth, a diversified product portfolio, and strong free cash flow generation. However, it faces challenges such as high R&D expenditure and exposure to regulatory changes

Leading competitive positions in the life sciences, diagnostics, and environmental solutions industries; ~70% of revenue is recurring. Aggressive M&A (like TMO), successful track record delevering. Spread levels are very tight see limited upside potential.

A3(Pos)/A-(Stable)
Health Care - Americas
$5.60bn in index across 7 issues

48
Q

DAVITA INC (DVA)

A

Leading provider of dialysis services, operating numerous outpatient dialysis centers worldwide. Their business model emphasizes integrated care services and technological innovations to improve patient outcomes. Financially, DaVita’s strong market position and consistent revenue from dialysis treatments support their growth strategy.

Dialysis provider = typically stable volumes. 2023 volatile year for business due to volumes coming in weaker than expected coupled with GLP-1 fears on future growth/volumes (size of impact debateable but largely a 10+ year risk vs. near term). 3.0-3.5x leverage target (3.6x today). Leverage down due to EBITDA growth vs. debt reduction, with FCF expected to more go towards share buybacks in future. UW ‘30 and ‘31 notes given tight spread levels with lack of upcoming catalysts and elevated mortality rates keeping DVA volume growth below its 2.0% target level and capacity utilization remaining fairly low at 58% across its facilities.

Ba3/BB-
Health Care - Americas
$4.25bn in index across 2 issues

49
Q

ENCOMPASS HEALTH CORP (EHC)

A

Operates inpatient rehabilitation hospitals and provides home-based care services. Their business model focuses on delivering high-quality rehabilitation and home health services to patients recovering from serious illnesses or injuries. Financially, Encompass Health benefits from a strong market position and consistent demand for rehabilitation services.

Pure-play inpatient rehab business which continues to grow organically. Mgmt. spending heavily adding new facilities and expanding existing ones. Easing SWB cost pressures like many healthcare peers. Net lvg. 2.7x with a lvg. target of 3.25-3.5x, and total liquidity of just over $1.0Bn. Spread per turn of leverage tight amongst peers but would stay overweight given solid FY24 guide, resilient business model, and favorable credit profile.

Ba2/B+
Health Care - Americas
$2.35bn in index across 4 issues

50
Q

GE HEALTHCARE TECHNOLOGIES INC (GEHC)

A

Leading global medical technology and digital solutions innovator, focusing on imaging, ultrasound, and patient care solutions. It is well-positioned due to its strong market presence and innovation in healthcare technology. GE Healthcare’s strengths include robust revenue growth and a diversified product portfolio. Its weaknesses include high R&D expenditure and exposure to regulatory changes

Mixed 2Q top line countered by improving margins, solid backlog (~$19bn) and gross leverage of 2.8x. GEHC FCF allocation includes reinvest in business, plans for M&A (expect bolt-on), balance sheet focus - debt, and dividends. 2H24/25 should benefit from: China stimulus, easier comps, improving margins (ending TSA agreements). We believe it should trade on top of BDX

Baa2/BBB/BBB
Health Care - Americas
$7.23bn in index across 5 issues

51
Q

HCA INC (HCA)

A

Operates a network of hospitals and healthcare facilities, providing comprehensive healthcare services across the U.S. It is well-known for its scale and operational efficiency. HCA’s strengths include stable cash flows and a strong market position. However, it faces challenges such as regulatory risks and exposure to economic cycles

HCA is a leading, well managed hospital operator, with solid performance (posted solid 2Q results) and a positive outlook for ‘24. ‘24 should benefit from: a) stabilizing wage growth (2.5%-3% going forward), b) improving demand growth and c) market share expansion. HCA is well within its target leverage (3-4x) at ~3.1x, although it appears it may be comfortable seeing leverage tick up. HCA has leverage headroom (~$9-$10bn in potential debt) so the risk of levering M&A is possible, although I do not expect them to put ratings at risk and anticipate bolt-on M&A as more likely

BBB-
Health Care - Americas
$33.00bn in index across 25 issues

52
Q

LABORATORY CORPORATION OF AMERICA HOLDINGS (LH)

A

Also known as Labcorp, is a global leader in laboratory services, providing diagnostic insights and drug development services. It is well-positioned due to its extensive laboratory network and strong market presence. Labcorp’s strengths include robust revenue growth and a diversified product portfolio. Its weaknesses include high R&D expenditure and exposure to regulatory changes

Baa2(Pos)/BBB/BBB+
Health Care - Americas
$3.15bn in index across 5 issues

53
Q

MCKESSON CORP (MCK)

A

Global leader in healthcare distribution, providing pharmaceuticals, medical products, and healthcare services. It is well-positioned due to its extensive distribution network and strong market presence. McKesson’s strengths include stable cash flows and a diversified product range. However, it faces challenges such as regulatory risks and competitive pressures

A3/BBB+/A-
Health Care - Americas
$2.84bn in index across 6 issues

54
Q

Medtronic Inc (MDT)

A

Leading global healthcare technology company, specializing in medical devices and therapies that address a wide range of health conditions. It is well-positioned due to its extensive product portfolio and strong market presence in over 150 countries. Medtronic’s strengths include robust revenue growth, a diversified product pipeline, and solid free cash flow. However, it faces challenges such as high R&D expenditure and exposure to regulatory changes

Leading market positions across several MedTech categories, typically hightech with both product and geographic diversity. Solid 3Q results aided by procedure recovery. Expect bolt-on M&A and modestly improving leverage with EBITDA growth next year. Gross leverage ~2.5x. Spread levels are very tight see limited upside potential.

A/A-
Health Care - Americas
$6.05bn in index across 5 issues

55
Q

QUEST DIAGNOSTICS INCORPORATED (DGX)

A

Leading provider of diagnostic testing and services, offering a wide range of diagnostic information services. It is well-positioned due to its extensive laboratory network and strong market presence. Quest Diagnostics’ strengths include stable cash flows and a diversified product portfolio. Its weaknesses include exposure to regulatory changes and competitive pressures

Baa1/BBB+/BBB
Health Care - Americas
$3.40bn in index across 6 issues

56
Q

SMITH & NEPHEW PLC (SNLN)

A

Global medical technology company focused on the repair, regeneration, and replacement of soft and hard tissue. It is well-positioned in the orthopedics, sports medicine, and advanced wound management markets. Smith & Nephew’s strengths include a diversified product portfolio and strong market presence. However, it faces challenges such as regulatory risks and competition from other medical device companies.

Baa2/BBB+
Health Care - Americas
$2.00bn in index across 3 issues

57
Q

STRYKER CORPORATION (SYK)

A

Global leader in medical technologies, offering innovative products and services in MedSurg, Neurotechnology, Orthopedics, and Spine. It is well-positioned due to its strong market presence and continuous innovation. Stryker’s strengths include robust revenue growth and a diversified product portfolio. Its weaknesses include high R&D expenditure and exposure to regulatory changes

Favorable view of the credit driven by : 1) solid (organic) growth trajectory with top line growth of 11% in FY23, 2) reduced product concentration (all categories at or below 15%, with medical at 16% - although comprised of several sub categories), 3) focus on improving operating margins by ~200bps, 4) strong FCF profile (low-hi $3bn range) to support its dividend policy (~$1.2bn/yr) as well as bolt-on M&A and 5) maintaining its “strong investment grade rating” with leverage around 2.5x. Management expects near-term M&A to be bolt-on up to $1bn; commitment to the BBB ratings category. Within the higher rated peer group (TMO, DHR, MDT), would take the spread of Stryker.

Baa1(Pos)/BBB+
Health Care - Americas
$6.40bn in index across 9 issues

58
Q

TENET HEALTHCARE CORPORATION (THC)

A

Operates a diversified healthcare services network, including hospitals, outpatient centers, and surgical hospitals. Their business model focuses on providing comprehensive healthcare services and leveraging their subsidiary, Conifer Health Solutions, for revenue cycle management and value-based care services. Financially, Tenet benefits from strong revenue growth and strategic investments in technology and ambulatory care facilities.

Expansion of the ASC segment (faster growing, much higher margin) is a longterm positive. Capital allocation historically skewed credit friendly, but mgmt. instituted a $1.0B share repurchase plan. Recent asset sales have cut leverage ~0.6x to 2.8x. Strong top-line growth supported by higher volues, favorable payer mix, and improving margins on less contract labor. FY24 guide supported by continued tailwinds and expectations of further deleveraging, although some FCF will go towards buybacks in ‘24. Maintain OW despite trading inside HY corporates and most HC credits, given large weight in index and improving credit profile.

B3/B-/BB-
Health Care - Americas
$12.66bn in index across 9 issues

59
Q

THERMO FISHER SCIENTIFIC (FINANCE I) BV (TMO)

A

World leader in serving science, providing innovative technologies, purchasing convenience, and pharmaceutical services. It is well-positioned due to its extensive product range and strong market presence. Thermo Fisher’s strengths include strong revenue growth and a diversified product portfolio. However, it faces challenges such as high R&D expenditure and exposure to regulatory changes

TMO has leading positions in life sciences, lab products, specialty diagnostics, and analytical instruments; ~75% of revenue is recurring. Will increase leverage for M&A, though has a track record of delevering. Spread levels are very tight see limited upside potential

A3(Pos)/A-/A-
Health Care - Americas
$11.80bn in index across 15 issues

60
Q

ZIMMER BIOMET HOLDINGS INC (ZBH)

A

Global leader in musculoskeletal healthcare, offering a wide range of orthopedic products and services. It is well-positioned due to its strong market presence and continuous innovation. Zimmer Biomet’s strengths include robust revenue growth and a diversified product portfolio. However, it faces challenges such as high R&D expenditure and exposure to regulatory changes

Medical devices player leading in knees and hip implants. Financial policies are typically shareholder friendly

Baa2/BBB/BBB
Health Care - Americas
$2.56bn in index across 5 issues

61
Q

ABBVIE INC (ABBV)

A

Global biopharmaceutical company focused on developing and commercializing advanced therapies for complex diseases. It is well-positioned due to its strong product portfolio, including the blockbuster drug Humira. AbbVie’s strengths include robust revenue growth and strong cash flow generation. However, it faces challenges such as patent expirations and competition from biosimilars.

Products with high growth potential (Skyrizi, Rinvoq) are poised to counter/exceed the decline in Humira (LOE ‘22). Commitment to paydown $7bn in debt in ‘24 and reduce net leverage to 2.0x by ‘26. Solid pipeline through early ’30s, reduces need for large M&A. Believe spreads should trade 5-10bps inside BMY given better leverage metrics and pipeline.

A3(Pos)/A-
Pharmaceuticals - Americas
$54.38bn in index across 23 issues

62
Q

AMGEN INC (AMGN)

A

One of the world’s leading biotechnology companies, specializing in innovative medicines for serious illnesses. It is well-positioned due to its strong R&D capabilities and a diverse product pipeline. Amgen’s strengths include consistent revenue growth and a solid balance sheet. Its weaknesses include high R&D expenditure and exposure to pricing pressures in the pharmaceutical industry.

Leading biotech with strong market positions in musculoskeletal, immunomodulators, blood, and oncology. Diversified revenue stream (top 4 drugs ~ 43%) and solid pipeline. IRS tax litigation controversy is an overhang ($10.7B+). AMGN committed to repay >$10bn of debt through 2025 to reduce leverage (PF 4.2x) to pre-Horizon level (~3.2x). Solid FCF after dividends (~$8B)

Baa1/BBB+(Neg)/BBB
Pharmaceuticals - Americas
$54.91bn in index across 35 issues

63
Q

BAUSCH HEALTH COMPANIES INC (BHCCN)

A

Develops, manufactures, and markets pharmaceutical products and branded generic drugs, primarily for skin diseases, gastrointestinal disorders, eye health, and neurology. Their business model focuses on acquiring small pharmaceutical companies and increasing the prices of their drugs. Financially, Bausch Health benefits from a strong portfolio of products and strategic acquisitions that enhance their market position.

Facing a myriad of exogeneous pressures, each with high uncertainty of outcomes: (a) potential generic competition on a key product, Xifaxan; (b) financial engineering risk from activist investors to effectuate a spin-off transaction of a valuable subsidiary, Bausch + Lomb, resulting in a value leakage to equity holders; (c) legacy litigation risk

Caa2/CCC+/CCC
Pharmaceuticals - Americas
$12.70bn in index across 16 issues

64
Q

BIOGEN INC (BIIB)

A

Biotechnology company that discovers, develops, and delivers therapies for treating neurological and neurodegenerative diseases. It is well-positioned due to its strong focus on neuroscience and innovative product pipeline. Biogen’s strengths include robust revenue growth and a strong market position in multiple sclerosis treatments. Its weaknesses include high R&D expenditure and regulatory risks.

Investors are increasingly optimistic on positive data on lecanemab, Biogen’s next attempt at an Alzheimer’s drug. The botched launch of Aduhelm and continued skepticism from physicians on the effectiveness of potential Alzheimer’s drugs leave me cautious.

Baa2/BBB+
Pharmaceuticals - Americas
$6.57bn in index across 5 issues

65
Q

BRISTOL-MYERS SQUIBB CO (BMY)

A

Global biopharmaceutical company focused on discovering, developing, and delivering innovative medicines for patients with serious diseases. It is well-positioned due to its strong oncology and immunology portfolios. Bristol-Myers Squibb’s strengths include a robust product pipeline and strong cash flow generation. However, it faces challenges such as patent expirations and regulatory risks.

High margins and FCF. Strong position in oncology. Commitment to paydown $10B over next two years. Credit challenges are revenue concentration (top 2/3 drugs are 47%/61% of rev, respectively) and patent cliffs becoming material in 2026-2028. Bolt-on M&A still possible, PF leverage 2.2x (above 1.5x target). Expect near term delevering and believe spreads should be 10bps wide of ABBV

A2/A
Pharmaceuticals - Americas
$45.64bn in index across 34 issues

66
Q

ELI LILLY AND COMPANY (LLY)

A

Global pharmaceutical company that discovers, develops, and markets human pharmaceuticals and animal health products. It is well-positioned due to its strong product portfolio and innovative R&D capabilities. Eli Lilly’s strengths include stable cash flows and a diversified product range. However, it faces challenges such as high R&D expenditure and competition from other pharmaceutical companies.

Strong fundamentals. Still a ~50% diabetes business, but new product launches could propel long-term growth. Spreads reflect the bull case already.

A1(Pos)/A+(Stable)
Pharmaceuticals - Americas
$17.02bn in index across 19 issues

67
Q

GILEAD SCIENCES INC (GILD)

A

Biopharmaceutical company that discovers, develops, and commercializes medicines in areas of unmet medical need, including HIV, liver diseases, and oncology. It is well-positioned due to its strong market presence in antiviral therapies. Gilead’s strengths include stable revenue streams and a strong product portfolio. Its weaknesses include reliance on a few key products and competition from other pharmaceutical companies.

Global leader in HIV therapy, but heavily concentrated (>65% of rev & one drug (Biktarvy) representing 44% of rev). Further, upcoming price negotiation with CMS could negatively impact GILD in ‘28 when its 2 largest HIV drugs are expected to be subject to negotiations. Solid pipeline outlook driven by Oncology portfolio growth (11% of rev) reduces near term risk of large M&A with a greater focus on bolt-on/internal R&D. Net leverage 1.5x. Expected upgrade to A- at S&P this year. Spreads should trade on top of PFE/ABBV

A3/BBB+(Pos)
Pharmaceuticals - Americas
$20.50bn in index across 15 issues

68
Q

JOHNSON & JOHNSON (JNJ)

A

global healthcare company engaged in the research and development, manufacture, and sale of a broad range of products in the health care field. It is well-positioned due to its diversified business model across pharmaceuticals, medical devices, and consumer health products. Johnson & Johnson’s strengths include strong cash flow generation and a robust product portfolio. Its weaknesses include exposure to regulatory risks and legal challenges.

Fundamentals remain exceedingly strong despite the loss of its Consumer Health segment (Kenvue) and ongoing talc litigation. Very little RV but a safe name

Aaa/AAA
Pharmaceuticals - Americas
$27.95bn in index across 27 issues

69
Q

MERCK & CO (MRK)

A

Global healthcare company that delivers innovative health solutions through its prescription medicines, vaccines, biologic therapies, and animal health products. It is well-positioned due to its strong R&D capabilities and a diverse product portfolio. Merck’s strengths include robust revenue growth and a strong balance sheet. However, it faces challenges such as high R&D expenditure and regulatory risks.

Solid fundamentals driven by strong platform in oncology, vaccines, diabetes and animal healthcare, high free cash flow, partially offset by concentration in Keytruda (~42% of revs; US patent expiration in 2028 $30B run-rate) and Gardasil (~15% of revs). Risk of M&A is moderately high (expect range between $1-$15B) as MRK will need to replace Keytruda revenues in ‘28 and the company has leverage capacity (current net leverage ~1.0x) for M&A in current ratings. Trades inline with AA- spreads - As a result, believe risk reward is unattractive.

A1/A+
Pharmaceuticals - Americas
$28.17bn in index across 25 issues

70
Q

ORGANON & CO (OGN)

A

Global healthcare company focused on improving women’s health through a portfolio of prescription therapies and medical devices. Their business model includes a range of products for contraception, fertility, and other women’s health needs. Financially, Organon benefits from a strong market presence and a focus on addressing unmet medical needs.

Spun off fom Merck in 2021 - 24% revenues women’s health (Nexplanon 13.5% of total revenues), 71% established brands (55 products), and 5% biosimilars. Top 3 products make up 21% of total revenue but strong geographic diversification, margins and FCF. Committed to ratings and leverage to <3.5x. Nexplanon patents set to expire in US/EU in 2027/2025, but applicator patent through 2030. FCF expected to improve given lower spinoff related costs, but majority of brands have no patent protection. Pipeline of new drugs dependent on M&A/business development given lack of R&D capabilities.

Ba1/BB
Pharmaceuticals - Americas
$5.10bn in index across 4 issues

71
Q

Pfizer (PFE)

A

Global biopharmaceutical company that discovers, develops, manufactures, and markets medicines and vaccines for a variety of medical conditions. Well-positioned within the pharmaceutical industry due to its extensive research and development capabilities, as well as its strong portfolio of products in areas such as oncology, immunology, and cardiology. Innovative approach and significant investments in cutting-edge technologies, including mRNA vaccines. Robust financial performance, supported by high revenue from blockbuster drugs and vaccines. Reliance on a few key products for a substantial portion of its revenue.

The proposed debt-financed acquisition of Seagen + declining sales from COVID-related products are credit negatives, and could result in a downgrade at Moody’s. More diversified across product offerings than most peers; excluding COVID-19 vaccine, top 5 products are <50% of revenue. A better entry point fundamentally might be available in 2024

A2/A
Pharmaceuticals - Americas
$53.85bn in index across 30 issues

72
Q

ROYALTY PHARMA PLC (RPRX)

A

Operates as a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry. It is well-positioned due to its unique business model and diversified portfolio of royalties. Royalty Pharma’s strengths include stable cash flows and a diversified revenue base. However, it faces risks from changes in drug sales and regulatory environments.

Asset light model with high margins and strong FCF. Strong track record in acq of pharma royalty assets. Management will lever up to 4x (downgrade trigger) but positioned to delever through EBITDA growth/debt paydown to maintain low BBB rating, which is strategic positive for partners. Concentration in top segment (Cystic Fibrosis - 4 drugs) ~31% of revs. Expect cont. diversification to mitigate concentration. 2Q24 leverage ~3.0x - leaves capacity of ~$2.5B within rating. Given M&A focus and higher leverage, believe spread levels 30-40bps ($adj) back of the large BBB rated Pharma comps is fair (i.e. AMGN).

Baa3(Pos)/BBB-/BBB-
Pharmaceuticals - Americas
$7.80bn in index across 10 issues

73
Q

VIATRIS (VTRS)

A

Global healthcare company providing access to medicines, sustainable operations, and innovative solutions. It is well-positioned due to its extensive product portfolio and global reach. Mylan’s strengths include strong cash flow generation and a diversified product range. Its weaknesses include exposure to pricing pressures and regulatory challenges.

Global leader in off-patent branded and generic drugs, though competition is high and pricing pressure is a risk. VTRS expects to achieve net leverage of 3.0x by YE24 by reducing debt with the net proceeds (~$2.55B) from the noncore divestures in 1H24. VTRS is poised to achieve its net leverage target and then expect 50/50 split in FCF between shareholder friendly activities and growth oppty. Think spreads should be 10-15bps back of RPRX given higher leverage, but could grind tighter when over time (modestly back of RPRX).

Baa3/BBB-(Neg)/BBB
Pharmaceuticals - Americas
$10.95bn in index across 9 issues

74
Q

ZOETIS INC (ZTS)

A

Global leader in animal health, providing medicines, vaccines, and diagnostic products for pets and livestock. It is well-positioned due to its strong market presence and focus on innovation in animal health. Zoetis’s strengths include stable cash flows and a diversified product portfolio. Its weaknesses include exposure to regulatory changes and competition in the animal health industry.

Leading market position in animal health, benefiting from strong demand trends. Tight spreads relative to peers and management’s stated interest in M&A limit upside. Most products do not have patent protection.

Baa1(Pos)/BBB
Pharmaceuticals - Americas
$6.65bn in index across 10 issues

75
Q

TEVA PHARMACEUTICAL FINANCE COMPANY LLC (TEVA)

A

Biopharmaceutical firm, primarily focusing on generic medicines, branded drugs, and active pharmaceutical ingredients. Largest generic drug manufacturer globally, which positions it as a key player in the pharmaceutical industry. Differentiates itself through its extensive portfolio of generic medications and its significant market share.

Upgrade candidate. Management’s growth strategy has been gaining more credibility and deleveraging, a capital allocation priority, remains on track. Strong FCF generation, asset disposal optionality and the management’s IG focus provide a straightforward credit trajector

Ba2/BB-(Pos)/BB-(Pos)
Pharmaceuticals - Other Developed
$10.52bn in index across 8 issues

76
Q

KROGER CO (KR)

A

Kroger is one of the largest grocery retailers in the U.S., operating supermarkets, multi-department stores, and convenience stores. It differentiates itself through a strong private label offering and extensive digital and delivery services. Strengths: Stable cash flow from essential goods and a strong market position. Weaknesses: Thin profit margins typical of the grocery industry and high competition.

Baa1(Neg)/BBB(Neg)
Supermarkets - Americas
$8.67bn in index across 16 issues

Corps (15 decks)

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