Aug. 13 at 8:09 PM
Fitch Ratings upgraded Elanco Animal Health’s Long-Term Issuer Default Rating to ‘BB+’ from ‘BB’, while raising its senior secured debt rating to ‘BBB-’ from ‘BB+’ and senior unsecured debt to ‘BB+’ from ‘BB’. The outlook remains stable.
The upgrade reflects Elanco’s improved competitive position, market-share gains in pet health, broad product portfolio, consistent cash generation and conservative financial policy. Since 2024, the company has reduced debt by approximately
$650M through June 30, 2026, while EBITDA has increased more than 10%. Fitch expects leverage to remain below 3.5x and decline toward 3.0x by the end of 2027.
Fitch forecasts free cash flow to improve from
$345M in 2026 to about
$575M in 2028, driven by innovation-led margin expansion, cost savings, productivity gains and working-capital management. EBITDA margins are expected to reach 21% in 2026 and remain around 21%-22% thereafter.
$ELAN