Moody's assigns AmerisourceBergen notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to AmerisourceBergen Corp.'s new $400 million note issuance and a provisional Baa3 rating to senior unsecured securities under the company's new shelf registration.

At the same time, Moody's said it affirmed the company's existing Baa3 senior unsecured debt ratings.

The outlook is stable.

Proceeds are expected to be used to repay revolver outstandings, helping to support AmerisourceBergen's sufficient liquidity profile, the agency said.

The agency noted that the Baa3 ratings reflect the company's position as one of the nation's leading drug distributors, with a customer mix that favors smaller retail chains, independent pharmacies and institutional customers rather than large customers.

"Compared to its peers, AmerisourceBergen's focus on smaller customers provides more opportunities to expand margins via generic drug sales," commented Diana Lee, a senior credit officer at Moody's.

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