...- Zimmer Biomet Holdings Inc. released is fourth-quarter 2020 earnings, which highlighted a continued and sustained recovery in its revenue and earnings following the steep drop in its elective procedure activity earlier in the year due to the COVID-19 pandemic. Specifically, the company's adjusted leverage declined to 4.0x from the peak of 4.5x in the second quarter of 2020 and we now project its leverage will be in low-3x range by the end of 2021 as the COVID-19 related headwinds gradually dissipate. - Zimmer also announced a plan to spin-off its Dental and Spine business into a separate publicly traded company. The company intends to use the proceeds from the divestiture towards debt reduction. We view the proposed transaction, which we expect to be complete in mid-2022, as credit enhancing given the expected reduction in debt and increased focus on higher-margin core segments. - We are revising our outlook on Zimmer Biomet to stable from negative and affirming our '###' issuer credit...
