Moody's may cut McKesson

Moody's Investors Service said it placed the ratings of McKesson Corp. (senior unsecured at Baa2, short-term at Prime-2) under review for possible downgrade.

Moody's rating action is based primarily on concerns related to: (1) ongoing changes in the drug distribution model that provide uncertainty regarding predictability and sustainability of net income and cash flows; (2) sustainability of improvements in cash flow in light of one-time working capital benefits; and (3) the potential for higher leverage due to pending shareholder litigation.

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