S&P revises Olympus outlook to positive

S&P said it revised its outlook for Olympus Corp. to positive from stable and affirmed the company’s BBB+ ratings.

“We revised the outlook mainly for two reasons. First, Olympus' profit and profitability are highly likely to improve substantially in the coming six to 12 months. This is because it has concentrated operating resources in its medical device business and steadily enhanced the business globally. Second, we expect the company's financial strength to remain commensurate with the long-term issuer credit rating in the coming one to two years under disciplined financial management, although it will make growth investments,” S&P said in a press release.

The agency said it forecasts Olympus’ EBITDA margin will widen in fiscal 2022, ending March 31, 2023, to the upper end of 26% from 23% in the previous year. “We expect the margin to hover around 26% in the coming one to two years.”

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