Moody's: Walgreen debt target pressured

Moody's Investors Service said it expects some pressure on the ability of Walgreen Co. (Baa1/stable) to meet its net $11 billion debt target by the end of fiscal 2016 due to Alliance Boots GmbH's plan to acquire Farmacias Ahumada SA for an equity consideration of about $640 million. Moody's anticipates that this acquisition will be largely debt financed, likely increasing Alliance Boots' debt levels. Walgreen plans to acquire the remaining 55% stake in Alliance Boots in 2015, leading to the pressure on its debt target.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.