Moody’s rates AmerisourceBergen notes Baa2

Moody's Investors Service said it assigned Baa2 ratings to AmerisourceBergen Corp.’s new 10-year and 30-year senior unsecured notes.

Proceeds will be used to fund AmerisourceBergen's $815 million acquisition of drug wholesaler H.D. Smith, refinance upcoming debt maturities, and for general corporate purposes.

Moody's estimates pro forma debt to EBITDA to rise very modestly to 1.8 times as of Sept. 30, 2017.

"The addition of H.D. Smith will strengthen AmerisourceBergen's presence in key geographic markets," Moody's vice president, senior analyst Jonathan Kanarek said in a news release.

"Further, we expect the significant business similarities between the two companies to reduce AmerisourceBergen's integration risk."

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