Boston Scientific stock faces leverage pressure after negative outlook

Boston Scientific faces a tougher credit backdrop after S&P Global Ratings revised its outlook on the medical-device maker to negative from stable on Friday, November 6, 2026. The agency affirmed the company's A- issuer credit rating and senior unsecured debt rating, while leaving its A-2 short-term rating unchanged.

Boston Scientific stock traded at 39.63 euros on Lang & Schwarz at 13:20 CET on Wednesday, November 11, 2026.

Credit pressure meets slower growth

In its assessment, S&P Global Ratings said Boston Scientific's WATCHMAN and electrophysiology franchises face market and competitive headwinds. WATCHMAN accounts for 10 percent of revenue, according to the agency, while electrophysiology contributes 16 percent. S&P said disappointing clinical-trial data had slowed WATCHMAN procedures and increased competitive pressure was weighing on the electrophysiology franchise, including FARAPULSE.

The agency expects revenue growth of 4.4 percent in 2026 and 9 percent in 2027, compared with growth in the mid- to high-teens in 2024 and 2025. The 2027 projection includes a full year of Penumbra results, making the forecast dependent not only on demand trends but also on the integration of the planned transaction.

Penumbra raises the balance-sheet stakes

Boston Scientific's planned acquisition of Penumbra for 14.5 billion US dollars is expected to close in early 2027. S&P projects that adjusted leverage will rise above 3.6 times after completion, well above its 2.5-times downside trigger, and remain elevated for the following two years as growth and EBITDA recover more slowly.

The company has announced a restructuring program targeting 500 million US dollars in savings through 2029. S&P nevertheless expects Boston Scientific to keep investing in commercial support for its key franchises. The agency said the broader cardiovascular and MedSurg portfolio, which represents 74 percent of total revenue, remains diversified and should grow at mid-single-digit rates.

S&P estimates that Penumbra generated roughly 1.4 billion US dollars of revenue in 2025 and grew at a mid- to high-teens rate. The agency views the acquisition as complementary, but expects management to limit additional acquisitions and share repurchases while it integrates Penumbra and reduces leverage.

Execution will shape the outlook

S&P said the outlook could return to stable if Boston Scientific stabilizes WATCHMAN and electrophysiology, restores growth across the franchises, integrates Penumbra smoothly and keeps leverage below 2.5 times. A downgrade would become more likely if those franchises continue to deteriorate or if the company adopts a more aggressive capital-allocation policy.

For investors, the credit action adds a balance-sheet test to the existing operating challenge. The stock's near-term focus remains the pace of recovery in the two pressured franchises, the planned Penumbra closing in early 2027 and the company's ability to convert the announced cost savings into stronger margins without weakening commercial investment.

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