Moody's rates McKesson notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to McKesson Corp.'s $500 million senior note offering.

The outlook is stable.

Proceeds will be used for general corporate purposes, including the settlement of the private payer portion of AWP-related litigation.

Ratings reflect the company's position as one of the nation's leading pharmaceutical distributors as well as solid cash flow generation, the agency said.

"McKesson's measured approach to buybacks and acquisitions offsets uncertainty associated with a tough economic environment," Diana Lee, a senior credit officer at Moody's, said in a statement.

The affirmation assumes that McKesson will maintain a sufficient liquidity profile, especially in light of the potential for additional litigation payouts related to AWP litigation, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.