Moody's ups Boston Scientific

Moody's Investors Service said it upgraded Boston Scientific Corp.'s long-term debt ratings, including the senior unsecured notes, to A3 from Baa1. Moody's also affirmed the company's Prime-2 short-term debt rating.

The outlook is stable.

The upgrade reflects Moody's expectations that the company will continue to generate solid free cash flow despite a more crowded and volatile drug eluting stent market, other products with leading market positions will grow in excess of 10% over the medium term and the company will maintain ratios of operating cash flow to adjusted debt and free cash flow to adjusted debt of about 50% and 45%, respectively, through 2006 assuming a settlement of litigation with Johnson & Johnson is no greater than $750 million.

The ratings also reflect high concentration risk in one product and potential cash flow volatility associated with higher competition, technological obsolescence and regulatory issues, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.