Fitch Ratings affirmed Boston Scientific Corp.'s BBB long-term issuer default rating with a stable outlook.
The rating action applies to about $10.9 billion of debt as of Sept. 30.
Marlborough, Mass.-based Boston Scientific's gross debt to EBITDA ratio is currently high due to the largely debt-financed $4.2 billion acquisition of London-based pharmaceutical company BTG Ltd.
Fitch expects that the company will prioritize leverage reduction over share repurchases and reduce it to about 2.5x by the end of 2020. Leverage is a measure of debt a firm uses to finance its operations.
With reduced contingent liability risk, particularly regarding litigation and taxes, Fitch believes the company will have more flexibility to pursue targeted acquisitions without incurring noticeable debt. In addition, Fitch expects Boston Scientific to continue launching new products in the market with focus on shifting to the high-growth markets.
Boston Scientific is a medical device company that provides physicians with devices used in different areas of healthcare.