S&P trims Stryker

S&P said it lowered its ratings on Stryker Corp. and its senior unsecured debt to BBB+ from A- and removed the ratings from CreditWatch, where it placed them with negative implications on Jan. 7.

The downgrade reflects our view that the size and timing of Stryker's $3 billion acquisition of Vocera Communications Inc.––coming only a year and a half after the closing of the company's $5.4 billion acquisition of Wright Medical Group NV that pushed its leverage above 3x–signals a stronger acquisition appetite than we previously expected,” the agency said in a press release.

S&P said it now forecasts leverage for the company at 2.5x-3x compared with its previous estimate of 2.5x and under.

The outlook is stable.

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