Moody's assigns Baa2 to Smith & Nephew

Moody's Investors Service said it assigned a Baa2 first time long-term issuer rating to Smith & Nephew plc.

“Solid historical credit metrics reflect S&N's prudent balance sheet management as well as disciplined approach to acquisitions, characterized by Moody's adjusted leverage at or below 1.5x for the past decade, including as of December 2019. However, Moody's expects that the group will operate in line with its stated net leverage target of 2x - 2.5x by accelerating acquisitions funded primarily by debt, leading to a step-up in leverage,” Moody’s said in a press release.

The outlook is stable. “The stable outlook reflects the expectation that S&N will restore operating performance to pre-coronavirus levels in 2021,” Moody’s said.

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