We see further improvements ahead for HealthTech-focused group Koninklijke Philips' operating performance thanks to its more stable business activities with increased earnings visibility and pricing power. We forecast annual free cash flow generation to remain around €1.5 billion with adjusted debt leverage between 2.0x-2.5x. We are affirming our 'BBB+/A-2' issuer credit ratings and 'BBB+/A-2' issue ratings on Koninklijke Philips. The stable outlook reflects our view that positive growth prospects for HealthTech will continue to support the company's operating performance. On July 27, 2018, S&P Global Ratings affirmed its 'BBB+/A-2' long- and short-term issuer credit ratings on Dutch HealthTech-focused group Koninklijke Philips N.V. (Philips). The outlook is stable. At the same time, we affirmed the 'BBB+/A-2' senior unsecured issue ratings. The
