Fitch puts McKesson on watch

Fitch Ratings said it placed McKesson Corp.'s A- long-term issuer default rating, senior unsecured credit facility and senior unsecured debt on Rating Watch negative.

The short-term issuer default rating and commercial paper were affirmed at F2 with a stable outlook.

The action follows McKesson's plans to acquire all the outstanding shares of US Oncology, Inc. for $2.16 billion, including the assumption of about $1.59 billion at June 30 of US Oncology's debt, according to the agency.

The company has said that substantially all of US Oncology's debt will be refinanced or repaid.

Fitch said the deal has the potential to increase debt leverage to outside the leverage range, or total debt-to-operating EBITDA ratio at 0.8 times to 1.2x.

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