Moody's lifts Boston Scientific

Moody's Investors Service said it raised Boston Scientific Corp.'s speculative grade liquidity rating to SGL-1 from SGL-3 following the announcement that the company has entered into a definitive agreement to sell its neurovascular business to Stryker for about $1.5 billion.

Moody's affirmed the company's Ba1 corporate family, probability of default and senior unsecured notes ratings.

The outlook is stable.

The upgrade reflects expectations of very good liquidity and substantial sale proceeds and solid cash flow generation, which should allow the company to fund basic operating needs, Moody's said.

The ratings reflect the company's large revenue base and diverse product lines. It considers moderately high leverage, reliance on modestly growing markets, declining sales trends and competition and pricing pressure in cardiovascular product lines, Moody's said.

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