Fitch cuts Boston Scientific to one level above junk
NEW YORK, April 27 (Reuters) - Fitch Ratings on Friday cut its ratings for Boston Scientific Corp. (BSX.N) and changed its outlook to negative from stable, citing the medical device maker's acquisition of Guidant Corp.
A negative outlook means Fitch may cut the company's ratings again in the next one to two years, which would push it into junk territory.
"The rating downgrade and outlook revision reflect the company's higher leverage from its acquisition of Guidant," Fitch said in a release.
The company reported lower net earnings on Monday due to costs related to the acquisition of Guidant and weaker sales of its drug-coated stents to treat clogged heart arteries.
Boston Scientific has been stung by a slowdown in demand for both drug-coated stents and implantable heart defibrillators since paying $27 billion for Guidant one year ago.
Fitch cut Boston Scientific's debt and issuer ratings to "BBB-minus," which is one step above junk territory, from "BBB."
The company's bonds did not trade significantly on Friday, according to MarketAxess.
