S&P cuts Medtronic

Standard & Poor’s said it lowered its ratings on Medtronic Inc., including the corporate credit rating and all issue-level ratings to A from AA-.

At the same time, S&P removed those ratings from CreditWatch, where S&P placed them with negative implications on June 16, 2014. The outlook is stable.

S&P also lowered the commercial paper rating to A-1 from A-1+.

S&P subsequently withdrew its corporate credit rating of A and short-term corporate credit rating of A-1 on Medtronic Inc. and assigned those ratings to the new Ireland-based holding company, Medtronic plc.

“The downgrade reflects our view that the incremental strengthening of the business risk from the acquisition of Covidien is more than offset by the considerable increase in debt leverage,” said S&P credit analyst David Kaplan in a news release.

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