Moody's lowers Walgreen

Moody's Investors Service said it downgraded Walgreen Co.'s long-term issuer rating to A1 from Aa3 and assigned a stable outlook.

The company's Prime-1 commercial paper rating was affirmed, the agency said, adding that the downgrade considers that Walgreen will not be able to improve its credit metrics to the level needed to maintain its current rating given the expectation of slower revenue growth and margin pressure going forward.

Additionally, as highlighted by in the credit opinion dated Oct. 17, 2007, Moody's said it believes Walgreen's financial policy has become somewhat more liberal in recent years as evidenced by the company using commercial paper to finance acquisitions.

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