The upgrade follows Insulet's plans to issue $450 million of unsecured notes, increase its revolving credit facility from $300 million to $500 million, and extend its maturity from 2028 to 2030. The company intends to use the proceeds from these transactions, along with balance sheet cash and the proceeds from the unwinding of a capped call on its convertible notes, to repay its $800 million 0.375% convertible notes due 2026. These actions, coupled with Insulet's continued strong performance, are expected to reduce the company's debt to EBITDA ratio to about 1.8x by the end of 2025, down from 3.1x in 2024. The company's management also indicated a long-term gross leverage target of less than 3x. The upgrade reflects the company's commitment to maintain a gross leverage of below 3x and its robust earnings expansion. Insulet reported a 22% increase in full-year 2024 revenue and a 33% increase in EBITDA, year over year.