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Boston Scientific (BSX: Baa1/BBB+) vs Medtronic (MDT: A3/A)

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  • Medtronic enjoys the tightest spreads in the MedTech sector on account of its single-A rating. It currently trades around -15bps inside Boston Scientific.
  • MDT's rating has been is a former AA- name which is now single A, whereas BSX has been as low as Ba2/BB+ and is on an upward path - currently BBB+.
  • In the past 5years, BSX equity has rallied 81% vs MDT -21% (MDT does pay a dividend of 3.5% but not enough to account for the relative return).
  • BSX revenue has increased +41%; NetDebt fallen -24%
  • MDT revenue has decreased -7%; NetDebt increased +16%
  • Current NetDebt to Ebitda for BSX is 1.6x ; MDT 1.9x

Source: MNI, Bloomberg


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  • Medtronic enjoys the tightest spreads in the MedTech sector on account of its single-A rating. It currently trades around -15bps inside Boston Scientific.
  • MDT's rating has been is a former AA- name which is now single A, whereas BSX has been as low as Ba2/BB+ and is on an upward path - currently BBB+.
  • In the past 5years, BSX equity has rallied 81% vs MDT -21% (MDT does pay a dividend of 3.5% but not enough to account for the relative return).
  • BSX revenue has increased +41%; NetDebt fallen -24%
  • MDT revenue has decreased -7%; NetDebt increased +16%
  • Current NetDebt to Ebitda for BSX is 1.6x ; MDT 1.9x

Source: MNI, Bloomberg