S&P puts Stryker on negative watch

S&P said it placed Stryker Corp.’s ratings on CreditWatch with negative implications on news the company plans to acquire Wright Medical Group NV in a $5.4 billion debt-funded deal.

“Though we expect the acquisition to make a meaningful contribution to Stryker's operating results in 2021 (the first year Stryker will consolidate a full year of Wright Medical's operating results), the incremental debt will drive leverage well over 2x in 2020 and 2021,” said S&P in a press release.

S&P said it plans to meet with Stryker’s management to learn more about the company’s strategy, leverage target and debt reduction plans.

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