Moderate diversity of health care products and geographies; Leading market positions; Low ostomy customer switching rates; Wound care products and continence and critical care products facing more commodity-like competitive pressures; and Average EBITDA margins for a medical device company. Very highly leveraged capital structure; Improving cash flow from operations and low capital expenditure needs; "Adequate" liquidity; and Somewhat acquisitive. Our rating outlook on ConvaTec is stable, reflecting our expectation that leverage will remain high despite improving operating trends. Given an already highly leveraged capital structure, we believe weakening liquidity could trigger a downgrade. As a result, we would consider ConvaTec's rating weak relative to peers. For example, a debt-financed acquisition that would eliminate free operating cash inflows could precipitate a
