Japan-Based Olympus Assigned 'BBB+' Rating; Outlook Stable

Olympus is likely to maintain its strong position in niche areas of the global medical device market, building on its 70% share of the global market for gastrointestinal endoscopes. The company's conservative financial management is likely to keep key financial ratios at very strong levels, even as it pursues growth in the global medical device market. We view the severe hit that fines have inflicted on its profitability and key financial ratios as having stemmed from governance problems. We are assigning our 'BBB+' long-term issuer credit rating to the company. The outlook is stable because we expect profitability to improve moderately in the coming year or two as the company enhances its medical device business while maintaining very strong financial

...February 18, 2020 - Olympus is likely to maintain its strong position in niche areas of the global medical device market, building on its 70% share of the global market for gastrointestinal endoscopes. - The company's conservative financial management is likely to keep key financial ratios at very strong levels, even as it pursues growth in the global medical device market. - We view the severe hit that fines have inflicted on its profitability and key financial ratios as having stemmed from governance problems. - We are assigning our '###+' long-term issuer credit rating to the company. - The outlook is stable because we expect profitability to improve moderately in the coming year or two as the company enhances its medical device business while maintaining very strong financial ratios and adhering to industry regulations. TOKYO (S&P Global Ratings) Feb. 19, 2020--S&P Global Ratings today said it has assigned its '###+' long-term issuer credit rating to Japan-based medical technology company...

Ratings Action