Zimmer Biomet’s outlook was deemed stable due to its market position in knee and hip orthopedics, sports medicine, extremities, trauma, craniomaxillofacial and thoracic, according to a July 12 news release.
Along with its market shares, Zimmer Biomet is also expecting to introduce 50 robotics products over the next four years, with three-quarters of the products targeting 4%+ growth markets.
“BBB” is the fourth-highest issuer default rating given out by Fitch, which represents good credit quality and a low expectation of a company defaulting.
The rating assumes Zimmer Biomet will see mid-single-digit annual revenue growth, gradual EBITDA margin expansion, effective interest rate to increase to 4% and small mergers and acquisitions with common dividends staying flat and share repurchases of over $500 million annually.
The ratings were applied to approximately $6 billion of debt as of March 31, the release said.
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