Fitch downgrades McKesson

Fitch Ratings said it downgraded McKesson Corp.'s long-term issuer default rating to BBB+ from A-, unsecured bank facility to BBB+ from A- and unsecured senior notes to BBB+ from A-.

The agency also said it affirmed the company's short-term issuer default rating at F2 and commercial-paper rating at F2.

The outlook is negative.

The downgrades follow the close of McKesson's agreements with Franz Haniel & Cie GmbH and Elliott Fund Management to acquire the companies' respective stock and convertible bond holdings of Celesio AG, Fitch said. These transactions are valued at about €3.7 billion.

The acquisition of Celesio is strategically sound, though moderate event risk remains as to the subsequent steps in the acquisition process, the agency said.

Increased scale from the deal will allow the company to drive cost savings, particularly related to generic drug sourcing, Fitch said, and future growth.

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