Fitch Ratings has confirmed Boston Scientific Corporation’s credit ratings at ’A-’ for long-term and ’F1’ for short-term debt. The outlook has been changed to Positive from Stable.
The change comes after Fitch removed a previous observation status that was applied when new corporate rating criteria were published on January 9.
The Positive Outlook shows Fitch believes Boston Scientific’s strong business could lead to a future upgrade to ’A’. This depends on the company’s financial profile returning to normal after its $15 billion acquisition of Penumbra Inc.
Fitch expects Boston Scientific to continue growing fast. Revenue for 2025 is forecast at around $20 billion, which is about 20% higher than the previous year. This exceeds both the company’s initial guidance of 12.5%–14.5% and Fitch’s earlier expectation of 14%.
The Penumbra deal is bigger than Boston Scientific usually takes on, but it fits the company’s strategy of entering faster-growing markets. Penumbra operates in areas growing about 11% on average, compared with Boston Scientific’s core 8% growth markets.
Fitch expects adjusted EBITDA leverage to rise to 3.3 times by the end of 2026 if the Penumbra acquisition closes on schedule. By the end of 2027, leverage is expected to fall to 2.4 times thanks to debt repayment and stronger earnings.
Annual free cash flow is also expected to grow significantly, from $1.7 billion in 2023 to around $4 billion in 2026. This is supported by efficient working capital management and higher operating income.
Boston Scientific continues to focus on high-growth markets, which make up about 55% of current revenue. The company expects this share to rise to 60% by 2028, helping maintain an overall market growth rate of around 9%.
