S&P assigns Express Scripts notes BBB+

Standard & Poor's said it assigned its BBB+ issue-level rating to Express Scripts Holding Co.'s proposed senior notes that will be offered in three tranches.

The company intends to use the proceeds to pre-fund the maturity of its $900 million senior notes due Nov. 15, 2014, redeem its $1.25 billion senior notes due 2016 and for general corporate purposes.

The BBB+ corporate credit rating on Express Scripts is based on its 'satisfactory' business risk profile and 'modest' financial risk profile.

Express Scripts has a leading market position in the growing pharmacy benefit management (PBM) industry, and has long-term contracts that support revenue visibility; however, S&P said it believes the PBM industry is competitive and subject to ricing pressure. The agency expects leverage to remain around 2x.

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