Moody's revised the ratings outlook on Medtronic PLC to stable from negative and affirmed the company's A3 senior unsecured rating.

The rating agency said the revision reflects the improvement in Medtronic's leverage as Moody's expects that debt/EBITDA will approach 3x within the next couple of quarters.

In addition, the outlook reflects that the medical device-maker will have better access to overseas cash balances and cash flows due to the U.S. tax overhaul.

Medtronic's A3 senior unsecured rating reflects the company's significant scale with revenue near $30 billion. The company also benefits from its market-leading position in therapeutic areas such as cardiology, spine, diabetes and vascular products.

The company also benefits from its global presence, with about 15% of its revenues arriving from faster-growing emerging markets, according to the agency.