S&P Global Ratings affirmed Becton Dickinson and Co.'s short term rating at A-2 and long term issuer credit rating at BBB.

The outlook on the ratings is stable.

The affirmation takes into account the agency's expectation that Becton Dickinson will reduce leverage to 3.5x in 2020, and maintain it below 3.75x, despite the recent increase in the product liability reserve.

Becton Dickinson's product liability reserve, which Ratings view as debt-like, increased to $2.5 billion at the end of 2019.

S&P Global Ratings said the stable outlook reflects its expectation that Becton Dickinson will reduce leverage and have a sufficient cushion to absorb an increase in its product liability reserve of up to $1.5 billion before exceeding the 3.75x leverage threshold for the BBB rating.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.