S&P Global upgrades Hikma Pharmaceuticals’ Credit Rating to ‘BBB’ on strong performance

JORDAN— Hikma Pharmaceuticals PLC, a leading multinational pharmaceutical company headquartered in Jordan, has received a significant vote of confidence from S&P Global Ratings.

On May 8, 2025, S&P announced an upgrade of Hikma’s long-term issuer credit rating from ‘BBB-’ to ‘BBB’, with a stable outlook.

This upgrade also applies to Hikma’s US$500 million senior notes due July 9, 2025, issued through its U.S. subsidiary, Hikma Finance USA LLC.

This improved rating is a testament to Hikma’s robust business momentum and its ability to sustain healthy growth prospects while maintaining stable credit metrics.

S&P’s decision reflects the company’s strong operational performance, particularly in the fiscal year 2024, where Hikma achieved an impressive 9% organic revenue growth.

This growth was fueled by the launch of over 100 new products, which helped offset margin pressures in the U.S. Generics business due to increased royalty payments.

Hikma’s broad and diversified product portfolio, especially in its Injectables and Branded divisions, has been further reinforced by strategic acquisitions such as the recent addition of Xellia Pharmaceuticals’ U.S. assets.

These moves have enabled Hikma to maintain its competitive edge and drive sustained business momentum.

The company’s prudent financial management is also evident in its approach to discretionary spending and its consistent policy of shareholder remuneration.

Despite the upcoming maturity of its US$500 million senior unsecured notes in July 2025, Hikma’s liquidity position remains solid.

The company has access to significant undrawn amounts under its US$1.15 billion committed revolving credit facility, which is not due until 2029.

This ample liquidity, along with positive free cash flow prospects, positions Hikma well to refinance its debt obligations in a timely manner.

Looking ahead, S&P expects Hikma to maintain annual revenue growth of approximately 4% to 6%, with stable or slightly expanding EBITDA margins in the range of 26% to 27%.

The company is projected to generate annual free operating cash flow exceeding US$200 million, with adjusted debt to EBITDA expected to remain close to 1.5x over the next 12 to 24 months.

 These metrics underscore Hikma’s financial resilience and its ability to withstand potential challenges, such as competitive pressures in the U.S. Generics and Injectables markets or possible trade policy frictions.

Hikma’s Chief Financial Officer, Khalid Nabilsi, expressed his satisfaction with the upgrading, stating that it confirms Hikma’s strong market position, profitability history, and cash flow, while also strengthening their investment grade rating.

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