Moody’s Lowers Outlook for Boston Scientific
Make a commentBy Ed Silverman // February 2nd, 2007 // 2:10 pm
The outlook is negative, says the rating service.
“Lingering uncertainty regarding drug-eluting stent usage, coupled with a much more crowded US field by 2008 provides significant downside risk for the company,” says Diana Lee, a healthcare analyst at Moody’s, in a statement announcing the change.
What does this mean? Well, sometime over the next year to year-and-a-half, Moody’s may downgrade the device maker, which could invoke the dreaded ‘j’ word - a junk rating. As this report notes, Boston Scientific already carries the lowest investment-grade rating.[tags]Boston Scientific, Moody’s[/tags]