01:41 PM EDT, 03/12/2024 (MT Newswires) -- Emergent BioSolutions ( EBS ) shares slumped Tuesday after S&P Global Ratings cut its credit rating for the vaccine manufacturer deeper below investment grade, saying the company may not be able to refinance its senior debt before those liabilities become current.

S&P Global lowered its issuer credit rating for the company to CCC+ from a prior rating of B- and also cut its rating for Emergent's senior unsecured notes to CCC from CCC+ previously.

Companies with S&P credit ratings below Baa1 are considered below investment grade, indicating they are more likely to default than issuers with debt above "junk" bond status. S&P Tuesday also said it was placing all of its ratings for Emergent Bio on CreditWatch with negative implications.

The downgrades follow Emergent last week saying lenders for its senior revolving credit facility and a senior term loan agreed to not declare the facilities in default through the end of April, subject to certain conditions.

S&P said while the forbearance agreement should not be considered a default, it's increasingly likely Emergent will refinance those loans or extend their maturity before the $219 million revolver and the $198 million term loan become current again in May. The ratings shop also said it believes the company's liquidity currently is less than adequate and will likely continue to deteriorate in the coming months.

Emergent shares were nearly 9% lower in recent trading Tuesday, partially paring a nearly 11% decline earlier in the day.

Price: 2.55, Change: -0.25, Percent Change: -8.93