Fitch rates Express Scripts loan BBB

Fitch Ratings said it assigned a BBB rating to Express Scripts Holding Co.’s new $7.5 billion bank facility.

The outlook is stable.

The company has a long-term issuer default rating of BBB, unsecured bank facility rating of BBB and unsecured notes rating of BBB.

Express Scripts, Inc. has a long-term issuer default rating of BBB and unsecured notes rating of BBB.

Medco Health Solutions, Inc. has long-term issuer default rating of BBB and unsecured notes rating of BBB.

The outlook is stable.

The proceeds will be used to refinance the current bank facility and to fund a $5.5 billion accelerated share-repurchase program.

The company repaid $1 billion of notes that matured in February 2015 and is expected to repay $500 million of notes due in September 2015, Fitch said.

The new bank facility is comprised of a five-year $2 billion revolver, a two-year $2.5 billion term loan A and a five-year $3 billion term loan A.

Despite relatively low margins, the company’s stable and robust cash flows are driven by excellent working capital management and very efficient operations, Fitch said.

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