Olympus' financial performance is set to take a big hit this quarter after its regulator, the U.S. Food and Drug Administration, halted shipments of some of the Japanese company's products, in our view. Given that the company has made significant outlays to comply with regulations, we believe there is increasing uncertainty about earnings prospects and stability. We therefore revised to negative from stable our outlook on Olympus and affirmed our 'BBB+' long-term issuer credit rating on the company. In late 2025, the company voluntarily recalled or suspended shipments of some products after the FDA revisited its sites and conducted an inspection. In June 2025, the FDA had warned the company against importing certain products into the U.S. over quality control
