RCMECredit materiality pre-analysisIncludes illustrative values
Analytical aid.Not a rating or rating recommendation. Public data only.
Boston Scientific
CIK
0000885725
SIC
3841
Event
8-K Item 1.05 · cyber incident
Identified
2026-08-25
Filed
2026-09-08
Audit trailOpen memo

Disclosure pass · scored on the day of the 8-K

Credit materiality by dimension

Re-scored as a new audit trail row when the next 10-Q states the cost. The first score is never edited.

Overall materiality

Moderate to elevated

The overall tier is the highest of Financial Risk, Business Risk and the Liquidity gate. Governance evidence can only raise it. There is no weighted average. scoring_rules.md 4.5scoring_rules.md 4.6

Low · 7 days ModerateBase · 21 days ElevatedHigh · 42 days Elevated

Financial risk

FFO to debt and debt to EBITDA, before and after the shock, against S&P published bands.

Low
FFO to debt35.9%Verifiedpre-event
Debt to EBITDA2.30xVerifiedpre-event
Pre-eventAfter shock, high caseWithin 10% of a band boundary

Corporate Methodology Table 17, standard volatility Corporate Methodology Table 17

Why

  • Low (7 days): FFO to debt 35.9% to 35.4%, stays in the 30% to 45% band. 18.1% from the 30% boundary, outside the 10% borderline zone.
  • Low (7 days): Debt to EBITDA 2.30x to 2.32x, stays in the 2x to 3x band. 22.7% from the 3x boundary, outside the 10% borderline zone.
  • Base (21 days): FFO to debt 35.9% to 34.6%, stays in the 30% to 45% band. 15.4% from the 30% boundary, outside the 10% borderline zone.
  • Base (21 days): Debt to EBITDA 2.30x to 2.36x, stays in the 2x to 3x band. 21.2% from the 3x boundary, outside the 10% borderline zone.
  • High (42 days): FFO to debt 35.9% to 33.4%, stays in the 30% to 45% band. 11.2% from the 30% boundary, outside the 10% borderline zone.
  • High (42 days): Debt to EBITDA 2.30x to 2.44x, stays in the 2x to 3x band. 18.8% from the 3x boundary, outside the 10% borderline zone.

Business risk

Operational status, share of earnings in the affected unit, outage length, data type.

Moderate to Elevated
ScenarioDriverTier
Lowpartial disruption, outage of 7 days.Moderate
Baseoutage of 21 days, at or above the 14-day threshold.Elevated
Highoutage of 42 days, at or above the 14-day threshold.Elevated
Affected unit share
1.0 Derived upper bound: affected segment not identified (2 reportable segments)
Data types
unknown Derived
Third-party impact
Needs analyst input

Why

  • Low: partial disruption, outage of 7 days.
  • Base: outage of 21 days, at or above the 14-day threshold.
  • High: outage of 42 days, at or above the 14-day threshold.

Liquidity gate

Sources over uses for 12 months after the event cost, with a 15% EBITDA stress.

High
Gate inputs (USD m). FFO after the event and the event cost are computed per scenario.
InputUSD mSource
Cash (source)539Verifiedfiling as of 2026-06-30 · excerpt
Undrawn committed facilities, beyond 12 months (source)1,311Verifiedfiling as of 2026-06-30 · excerpt
Contracted asset sales (source)0n/a
Working capital change, 12 months (source)(210)n/a
Debt maturing in 12 months (use)1,709Verifiedfiling as of 2026-06-30 · excerpt
Capex (use)876Derivedfiling as of 2026-06-30 · excerpt
Contracted acquisitions (use)11,000Verifiedfiling as of 2026-06-30 · excerpt
Shareholder distributions (use)615n/a

Governance evidence

Flags that can only raise the overall tier, never lower it.

No flags in this pass

Why

  • Low: no flags, overall tier moderate.
  • Base: no flags, overall tier elevated.
  • High: no flags, overall tier elevated.

Outage scenarios

lost EBITDA = EBITDA × affected share × disruption fraction × days / 365
MeasurePre-eventLow · 7 daysBase · 21 daysHigh · 42 days
Lost EBITDA (USD m)n/a48Derived143Derived287Derived
FFO to debt35.9%Verified35.4%Verified34.6%Verified33.4%Verified
Debt to EBITDA2.30xVerified2.32xVerified2.36xVerified2.44xVerified
Ratio band movedn/aNoNoNo
Business risk tiern/aModerateElevatedElevated
Overall tiern/aHighHighHigh

Financial context, FY2025 (USD m)

As-reported proxies. S&P adjustments not applied.

DerivedVerifiedNeeds analyst input
MetricUSD mProvenanceXBRL tags or formula
EBITDA4,981DerivedDerivedOperatingIncomeLoss + DepreciationDepletionAndAmortization
Debt11,436DerivedDerivedDebtCurrent + LongTermDebtAndCapitalLeaseObligations
FFO4,101DerivedDerivedOperatingIncomeLoss + DepreciationDepletionAndAmortization + InterestPaidNet + IncomeTaxesPaidNet
CFO4,534VerifiedVerifiedNetCashProvidedByUsedInOperatingActivities
FOCF3,658DerivedDerivedNetCashProvidedByUsedInOperatingActivities + PaymentsToAcquirePropertyPlantAndEquipment
DCFNeeds analyst inputDerivedNetCashProvidedByUsedInOperatingActivities + PaymentsToAcquirePropertyPlantAndEquipmentmissing: dividends_paid, share_repurchases
Cash interest319VerifiedVerifiedInterestPaidNet
Operating leases (shown separately)536VerifiedVerifiedOperatingLeaseLiability