Fitch Ratings affirmed Elanco Animal Health Incorporated's Long-Term Issuer Default Ratings (IDRs) at 'BB-' on March 6, 2025, maintaining a Positive Outlook. This reflects Elanco's progress in deleveraging following the 2024 sale of its aqua business, along with anticipated growth and margin expansion opportunities.
Fitch's organic growth assumption for Elanco is 4.0%-5.0% in 2025, driven by market share gains in global pet health and a strong position in U.S. farm animal markets. The rating agency noted that Elanco's financial flexibility has improved after nearly $1.5 billion of net debt repayments in 2024.
The report forecasts Zenrelia's global sales to reach $45 million to $50 million in 2025 and Credelio Quattro's global sales to reach $80 million to $90 million in 2025. Fitch may upgrade the IDR to 'BB' if Elanco exceeds revenue growth and profitability projections through stronger contributions from innovative products and maintains gross leverage below 4.5x.
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