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Danaher Corporation -- Moody's announces completion of a periodic review for a group of North America Medical Products and Device issuers

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Announcement of Periodic Review: Moody's announces completion of a periodic review for a group of North America Medical Products and Device issuersGlobal Credit Research - 10 Mar 2022New York, March 10, 2022 -- Moody's Investors Service (“Moody's”) has completed a periodic review of the ratings -and other ratings that are associated with the same analytical units for the rated entity(entities) listed below.The review was conducted through a portfolio review discussion held on 3 March 2022 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. A possible outcome from periodic reviews is a referral of a rating to a rating committee.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.Key Rating ConsiderationsThe principal methodology used for this review was Medical Products and Devices published in October 2021. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.Scale: Scale is considered because it can be an indicator of a company's ability to influence business trends and pricing within its service segments and to support a stable or growing market position. Scale can make a company more resilient to changes in demand and better able to absorb changes in costs. Scale can also give a company greater geographic diversity, greater bargaining strength with customers, labor, and vendors, and stronger research and development (R&D) capabilities. Revenue is an indicator of scale.Business Profile: The business profile is a consideration because a company's product diversity and market presence, as well as the characteristics of its products and the markets it serves, provide a meaningful indicator of the likely stability and sustainability of its future cash flows. Product line and end-user diversification help offset the constantly evolving dynamics of the health care delivery system, which influence demand and pricing. Market share can be an indicator of competitiveness, depth of customer relationships and likely prospects for future performance.Profitability: Profits matter because they are needed to maintain a competitive position, including sufficient reinvestment in R&D, marketing, manufacturing facilities, and human capital. Sustained high profitability is generally a strong indicator of substantial competitive advantages, particularly if combined with evidence of stable or rising market share. Return on sales (i.e., net profit after tax before unusual items divided by net revenues) is an indicator of profitability.Leverage and Coverage: Leverage and coverage measures are important indicators of a company's financial flexibility and long-term viability, including its ability to adapt to changes in the economic and business environments of the segments in which it operates. Leverage and coverage metrics include Debt/ EBITDA, Cash from Operations/ Debt, Free Cash Flow/ Debt and EBITA/ Interest Expense.Financial Policy: Management and board tolerance for financial risk is an important rating determinant because it directly affects debt levels, credit quality, and the risk of adverse changes in financing and capital structure. Our assessment of financial policies includes the perceived tolerance of a company's governing board and management for financial risk and the future direction for the company's capital structure. Considerations include a company's public commitments in this area, its track record for adhering to commitments and our views on the ability of the company to achieve its targets. Financial risk tolerance serves as a guidepost to investment and capital allocation. Liquidity management is an important aspect of overall risk management and can provide insight into risk tolerance.Other Rating Considerations: Other considerations include but are not limited to: financial controls and the quality of financial reporting; corporate legal structure; the quality and experience of management; assessments of corporate governance, as well as environmental and social considerations; exposure to uncertain licensing regimes; and possible government interference in some countries. Regulatory, litigation, liquidity, technology, and reputational risk as well as changes to healthcare reimbursement, consumer and provider spending patterns, competitor strategies and macroeconomic trends are also considered.This announcement applies only to Rated Entities with EU rated, UK rated, EU endorsed and UK endorsed ratings. Rated Entities, with Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced herein to the extent necessary, if they are part of the same analytical unit.Please see the Issuer page on www.moodys.com, for each of the ratings covered, most updated credit rating action, rating history, and Credit Rating action Press Release including the rating rationale and factors that could lead to a rating upgrade or downgrade.List of Issuers/Rated Entities• Abbott Laboratories• Agilent Technologies, Inc.• ASP Navigate Acquisition Corp.• Avalign Holdings Inc.• Baxter International Inc.• Bayou Intermediate II, LLC• Becton, Dickinson and Company• Bio-Rad Laboratories, Inc.• Boston Scientific Corporation• BVI Medical, Inc.• Carestream Dental Technology, Inc.• Carestream Health, Inc.• Confluent Medical Technologies, Inc. • CryoLife, Inc. • Danaher Corporation • Dentsply Sirona Inc. • Edwards Lifesciences Corporation • Embecta Corp. • Exactech, Inc. • Femur Buyer, Inc. • Greatbatch Ltd. • Hologic, Inc. • ICU Medical, Inc. • Illumina, Inc. • Insulet Corporation • LifeScan Global Corporation• Medical Depot Holdings, Inc.• Medline Borrower, LP• Medtronic, Inc.• NMN Holdings III Corp.• NSM Top Holdings Corp.• Ortho-Clinical Diagnostics SA • PerkinElmer, Inc. • Q Holding Company • Resonetics, LLC • STERIS plc • Stryker Corporation • TecoStar Holdings, Inc.• Teleflex Incorporated• Thermo Fisher Scientific Inc.• Varex Imaging Corporation• Viant Medical Holdings, Inc.• Vyaire Medical, Inc.• YI, LLC• Zest Acquisition Corp.• Zimmer Biomet Holdings, Inc.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. 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