S&P downgrades Zimmer

Standard & Poor’s said it lowered the ratings on Zimmer Holdings Inc., including its corporate credit rating and all issue-level ratings to BBB from A-.

The agency also said it removed the ratings from CreditWatch, where they were placed with negative implications in April 2014.

The outlook is stable.

The strengthening of the company’s business risk from the acquisition of Biomet is more than offset by the considerable increase in debt leverage, S&P said.

The stable outlook reflects prospects for modest revenue and EBITDA growth, the agency said, and an expectation that Zimmer will operate its business with net debt in the 2x- to 3x-range over the next few years.

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