Moody's may lower Walgreen

Moody's Investors Service said it placed Walgreen Co.'s ratings on review for possible downgrade including the senior unsecured notes rating of A1, its short-term commercial paper rating of Prime-1, and its senior unsecured shelf rating of provisional A1.

The review for possible downgrade is prompted by the company's unsolicited offer to acquire longs Drug Stores Corp. for $75 per share in cash for a total purchase price of $3 billion including the assumption of debt, the agency noted.

The review for possible downgrade reflects Moody's expectation that if the offer is successful the company will likely finance the transaction predominantly with debt.

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