Boston Scientific Corp.

The positive outlook reflects our expectation that the company will generally maintain adjusted debt leverage of less than 3.5x in 2020 and beyond. However, given the increase in its leverage from the BTG transaction, the company would have to establish a longer track record of maintaining leverage at these levels before we'd consider raising the rating. We could upgrade Boston Scientific if we gain further confidence that the company will reduce adjusted debt leverage to less than 3.5x in 2020 from the projected 4x in 2019 and will remain firmly committed to generally maintaining it below 3.5x. The 3.5x threshold is slightly lower than the standard for many of its peers, which reflects the volatility in the company's earnings and

...Upcoming and recent product launches in the Cardiovascular and MedSurg segments will remain key growth drivers in 2020-2021. We expect Boston Scientific's revenue and EBITDA growth to remain strong in 2020-2021, driven by recent successful product launches and a rich pipeline of new products. We expect the company to continue to improve its already strong competitive position through a combination of internal innovation and tuck-in acquisitions. In 2020-2021, the company's Cardiovascular and MedSurg businesses will lead revenue growth, which will continue to expand in the mid-to-high-single-digit percentages. Our projections reflect the strong momentum for WATCHMAN, LOTUS Edge, ACURATE, Sentinel, SpaceOAR, and NxThera; the recent launch of Exalt-D single-use duodenoscope; and the anticipated launches of POLARx pulmonary-vein isolation system, LuxDx implantable cardiac monitor, and Megatron large-vessel drug-eluting stent (DES). In addition, we expect the company to expand into new high-growth...

Full Report