S&P lifts Integer view to positive

S&P said it affirmed the B+ long-term issuer credit rating on Integer Holdings Corp. and affirmed of its issue-level and recovery ratings.

S&P said it revised the outlook to positive from stable, reflecting the potential for an upgrade if the company sustains long-term leverage in the 3x to 3.5x range.

Integer repaid $700 million of debt obligations in 2018 following the sale of its advanced surgical and orthopedic segment, resulting in leverage declining from 6.3x in 2017, to 3.8x by the end of 2018, the agency said.

The company said it plans to repay more than $100 million in debt in 2019, S&P said.

The agency said leverage is now expected to decrease to about 3.5x by the end of 2019 and to remain in 3x to 3.5x range in the next few years.

The company will continue to balance its leverage targets against acquisition opportunities, S&P said.

The positive outlook reflects a view that the company's financial policy may be changing to aim for sustained lower leverage, the agency added.

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