S&P cuts Boston Scientific's debt rating one notch

NEW YORK, July 23 (Reuters) - Standard & Poor's on Monday cut its rating on Boston Scientific Corp. (BSX.N) by one notch, citing the company's disappointing second-quarter results.

Medical device maker Boston Scientific on Friday posted lower-than-expected quarterly profit as sales of its flagship drug-eluting heart stents fell by 32 percent. Stents are tiny tubular devices that prop open diseased heart arteries. For details see [ID:nN20436662].

S&P cut Boston Scientific's rating to "BBB-minus," one step above junk status, from "BBB." The outlook is negative, which indicates the rating could be lowered to junk status over the next two years.

The rating downgrade also reflects increased concern about Boston Scientific's ability to reduce debt, S&P said in a statement.

Yield spreads on Boston Scientific's 6.4 percent notes due in 2016 widened by 30 basis points on Friday to 240 basis points over Treasuries, according to MarketAxess. There were no significant trades of Boston Scientific's bonds on Monday.