Moody's ups AmerisourceBergen debt

Moody's Investors Service said it upgraded the senior debt ratings of AmerisourceBergen Corp. to Baa2 from Baa3 and changed the company's outlook to stable from positive.

AmerisourceBergen's upgrade reflects the expectation that the company will adhere to a relatively conservative growth strategy and prudent financial policies, the agency said. Combined with prospects for ongoing margin improvement, the company is expected to maintain strong credit ratios.

The company's ratings reflect its 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, the agency added.

The strengths are partially offset by the company's concentration in a very low margin business and a shareholder-friendly posture towards share buybacks and dividends, Moody's said.

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