Grifols’ Credit Rating Affirmed by S&P Global; Outlook Stable

Barcelona, Spain, January 19, 2024 – S&P Global Ratings (S&P) has affirmed credit ratings on Grifols (MCE:GRF, MCE:GRF.P, NASDAQ:GRFS) at ‘B+’ with a stable outlook. Grifols´ rating remains unchanged based upon deleveraging prospects for 2024 associated with group profitability at more than 22% in 2023 and expectations to finalize the $1.8 billion deal with Haier, relating to the sale of 20% of Shanghai RAAS, in the first half of the year.

According to the S&P report, the stable outlook reflects that Grifols' credit metrics will improve in 2023 "thanks to global plasma market recovery supporting company sales and growing EBITDA." Additionally, S&P highlights the further operational performance improvement of Grifols in 2024, with adjusted EBITDA margins increasing, which will translate into a significant reduction in the leverage ratio.

The credit agency is seeing a stable outlook for the company, supported by "Grifols' commitment to using the disposal of the sale of a 20% stake in Shanghai RAAS to further deleverage." S&P also underlines that "Grifols' deleveraging path for 2024 remains on track, thanks to a recovery in the group's operating performance stemming from better fundamentals on the global plasma market and cost-saving measures ramping up".

Furthermore, S&P calls attention to the continuous improvement of Grifols' operating cash flow generations, which will become positive in 2023 and rebound in 2024. Therefore, S&P expects Grifols to maintain a strong liquidity position with sufficient funds to cover upcoming liquidity needs in the next 12 months.

S&P states at the end of its report that "despite the negative influence of short sellers' reports, the group's healthy free cash flow generation underpins its credit standing," showing the strong growth in Grifols’ operational and financial results and the robust financial position of the company that will help Grifols to keep executing its strategic and financial commitments in 2024.