S&P rates Stryker notes A+

Standard & Poor's said it assigned an A+ rating to Stryker Corp.'s (A+/stable/A-1) proposed senior notes maturing in 2016.

Proceeds will be used for working capital and other general corporate purposes.

The offering will not meaningfully increase Stryker's total adjusted debt-to-EBITDA ratio, which was 0.5x as of June 30, according to the agency. Debt leverage is expected to stay below 1.5x.

The rating reflects the company's satisfactory business risk profile and minimal financial risk profile, which reflects the company's strong positions in reconstructive, medsurg, and neurotechnology and spine products, S&P said.

The rating also reflects Stryker's sustained financial discipline, as well as the generally still increasing volumes and relatively stable market shares of the orthopedic products industry, the agency said.

Partially offsetting the company's strengths are its concentration in orthopedic implants and related devices, which exposes it to potential changes in pricing or medical treatment protocols, the agency noted.

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