New York, Jan 23, 2026, 21:14 EST — Market closed
- On Friday, BSX climbed 1.3%, ending the day at $92.51
- Fitch reaffirmed Boston Scientific’s A-/F1 ratings and upgraded the outlook to Positive
- Traders are turning to Monday’s reaction and the early-February results as the next key test
Shares of Boston Scientific Corp ended Friday up 1.3% at $92.51. Late in the session, Fitch Ratings revised the medical-device maker’s outlook to Positive, while keeping its A- and F1 issuer ratings unchanged. Fitch noted this could pave the way for an upgrade to “A” once the company’s financials stabilize following its planned Penumbra acquisition. The agency also highlighted leverage peaking near 3.3 times by the end of 2026 based on its projections. (Investing)
Boston Scientific’s latest credit move comes as it finalizes its headline deal of the month: a $14.5 billion cash-and-stock acquisition of Penumbra. On a Jan. 15 call, CEO Mike Mahoney hailed the deal as a “home run” and “financially compelling.” JPMorgan analysts agreed the deal “makes a good deal of sense” but warned it could “attract significant investor scrutiny.” (Reuters)
That’s the stage for Monday’s open. When credit investors latch onto the “positive” narrative, equity traders often pick up on it—sometimes gradually, sometimes in unexpected spots.
When a company needs funding, ratings become crucial. For Boston Scientific, the cost of borrowing and the flexibility of its financing play a key role in any major acquisition, particularly deals that rely heavily on cash.
Friday saw Boston Scientific edge past a flat S&P 500, outshining major device rivals like Abbott Laboratories, Medtronic, and Stryker. Trading volume climbed above its recent average. Yet, the stock remains about 15% shy of its 52-week peak, underscoring how quickly “safe” healthcare names can shift when deal activity and funding come into play. (MarketWatch)
For those unfamiliar with ratings, the issuer default rating boils down to an assessment of a borrower’s ability to meet debt obligations. A positive outlook doesn’t mean an immediate upgrade; it signals the likely direction — and management usually highlights this during their next earnings call.
Abbott’s shares took a steep hit following this week’s quarterly update, dragging down large-cap healthcare despite resilience in a handful of device stocks. (Investors)
There’s a clear “but.” Boston Scientific must still secure approvals for the Penumbra deal and show it can handle a big acquisition without keeping leverage high for too long. Any misstep could challenge the positive credit outlook and turn Monday’s rally into a retreat.
Boston Scientific is set to report its fourth-quarter and full-year 2025 results, with a conference call slated for Feb. 4 at 8:00 a.m. ET, following the earnings release. Investors will focus on guidance updates, cash-flow details, and any news on deal timing and financing. (Bostonscientific)
