Announcement on Mölnlycke Holding AB’s (publ) credit rating

Announcement on Mölnlycke Holding AB’s (publ) credit rating

October 27 2016

This is an Inside Information disclosure made by Pernilla Lindén, Chief Financial Officer, acting, in accordance with the EU Market Abuse Regulation (Regulation (EU) 596/2014 as amended by Regulation (EU) 2016/1011 and by Regulation (EU) 2016/1033).

Mölnlycke Health Care’s business performance continues to be very strong, generating an increasing level of operating profit and cash flow.

The Company Mölnlycke Holding AB (publ) has Eurobonds listed on the EuroMTF market of the Luxembourg Stock Exchange with ISIN numbers XS1137512668 and XS 1317732771.

The Company has decided on a change in finance policy to cater for a more efficient capital structure and decrease in cost of capital. The new policy for on-going leverage will be on average 3.0-3.5X net debt to EBITDA.

As a consequence of the change in finance policy Standard & Poor’s has lowered the Company’s corporate credit ratings from ‘BBB/A-2’ to ‘BBB-/A-3’, stable outlook. The long-term issue ratings on the Company’s senior unsecured debt was also lowered from ‘BBB’ to ‘BBB-‘.

The Rating Action by Standard & Poor’s was released on October 27, 2016.

The Company continues to be committed to maintain an investment grade rating going forward. Over time as we continue to strengthen our business risk profile our aspiration is to return to a BBB rating.

For further information:
Pernilla Lindén, Chief Financial Officer, acting
Phone +46 31 722 3492
Karin Högberg Arthursson, Group Treasurer
Phone +46 31 722 3017

Press contact

Bodil Czarnecki
Corporate Communications

Direct: +46 31 722 30 37
Mobile: +46 739 41 25 37

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