S&P: RPI Finance Trust d/b/a Royalty Pharma Senior Secured Debt Rated 'BBB-'
Our corporate credit rating on RPI Finance Trust is 'BBB-' with a stable outlook. Debt leverage will remain the same following the transaction.
RPI Finance Trust is the largest and leading pharmaceutical royalty acquisition company, with a proven track record and a diverse portfolio by product and by marketer. The company continues to maintain a high-quality portfolio of diverse pharmaceutical royalty streams. Key products in the portfolio include Tecfidera (a treatment for multiple sclerosis; Biogen Idec); Humira (a treatment for rheumatoid arthritis; AbbVie Inc.); and Emtriva/Truvada/Atripla (treatments for AIDS/HIV; Gilead)--all major leading products in their respective therapeutic classes. These three products accounted for about 54% of RPI's revenue, with Tecfidera accounting for 30%. We consider the visibility of RPI's royalty revenues and cash flows to be relatively high.
For the corporate credit rating rationale on RPI Finance Trust, see the summary analysis published on May 24, 2016.