Moody’s has upgraded the credit rating of Grifols, the Spanish producer of plasma-based medicines, from B2 to B1, in the latest sign of the company’s recovery from the crisis that followed a damaging report by the short seller Gotham City Research two years ago.
From crisis to recovery
In January 2024, Gotham accused Grifols of understating its debt, triggering a collapse in its share price and a wave of scrutiny. Grifols rejected the allegations, but the episode hit confidence hard, and Moody’s cut its rating to B3, deep in “junk” territory.
The recovery since has been gradual:
- May 2025: Moody’s raised the rating to B2, citing higher revenue, improved profitability and better management of the business.
- Now: a further upgrade to B1. The rating remains below investment grade, but is the company’s strongest in two years.
Moody’s has also raised Grifols’ probability of default rating to B1-PD and given it a stable outlook, meaning it expects the company’s financial position to remain solid over the next 12 to 18 months.
Why Moody’s is more positive
The agency pointed to:
- Grifols’ strong position in plasma medicines and its long track record;
- its vertically integrated model, controlling everything from plasma collection to the finished product;
- growing demand for plasma therapies and high barriers to entry for competitors;
- a sustained focus on reducing debt and improving free cash flow.
The figures
In the third quarter of 2025, Grifols reported revenue of €1,865 million, up 7.7% on the previous year, and a gross profit of €734 million. Net profit rose to €127 million.
The company’s view
Grifols’ chief financial officer, Rahul Srinivasan, said the upgrade recognised the company’s progress on its main priorities: reducing debt and generating cash. The company says it will continue to focus on operational efficiency, innovation in plasma therapies and financial discipline.
A better rating should make it cheaper for Grifols to borrow and refinance its debt — a key part of putting the Gotham episode firmly behind it.
