Moody's affirmed Zimmer Biomet Holdings Inc.'s Baa3 senior unsecured ratings and revised rating outlook to stable from negative.
The rating agency said its affirmation of the company's Baa3 senior unsecured ratings reflects that earnings will remain relatively stable over the next year despite the fact that production issues at its Warsaw Indiana facility have negatively impacted sales and margins.
Moody's said the rating reflects the company's position as the largest standalone orthopedic company in the reconstructive market.
The outlook revision reflects Moody's expectations that the company will repay debt from internally generated cash such that debt/EBITDA will approach three times in the next 12 to 18 months.
