Research Update: Boston Scientific Corp. Outlook Revised To Positive From Stable On Improved Leverage; Ratings Affirmed

Boston Scientific Corp. exceeded our deleveraging expectations for fiscal 2021, reflecting strong volume recovery post-COVID-19, two consecutive years of lower-than-expected acquisition spending, and newer products driving growth. As such, adjusted leverage has declined to 2.9x at the end of 2021, somewhat ahead of our previous expectations. We are projecting organic revenue growth in the 6%-7% range for 2022, reflecting strong growth of key products, such as its WATCHMAN cardiovascular implant and the receding impact of the pandemic, and for margins to expand slightly, despite some supply chain and inflation headwinds. We are affirming our 'BBB' issuer credit and senior unsecured debt ratings on the company, as well as our 'A-2' short-term rating. At the same time, we are revising our

...- Boston Scientific Corp. exceeded our deleveraging expectations for fiscal 2021, reflecting strong volume recovery post-COVID-19, two consecutive years of lower-than-expected acquisition spending, and newer products driving growth. As such, adjusted leverage has declined to 2.9x at the end of 2021, somewhat ahead of our previous expectations. - We are projecting organic revenue growth in the 6%-7% range for 2022, reflecting strong growth of key products, such as its WATCHMAN cardiovascular implant and the receding impact of the pandemic, and for margins to expand slightly, despite some supply chain and inflation headwinds. - We are affirming our '###' issuer credit and senior unsecured debt ratings on the company, as well as our 'A-2' short-term rating. At the same time, we are revising our rating outlook to positive from stable. - The positive outlook reflects prospects for a higher rating if Boston Scientific sustains adjusted leverage at or below 3x given our expectations for solid...

Research Update