S&P rates McKesson notes BBB+

S&P said it assigned its BBB+ issue-level ratings to McKesson Corp.'s (BBB+/stable/A-2) proposed multi-tranche euro- and U.S. dollar-denominated senior unsecured notes.

The corporate credit rating on McKesson is BBB+ and the outlook is stable.

McKesson plans to use the proceeds to refinance existing debt and for general corporate purposes.

“We view the transaction as essentially leverage-neutral,” the agency said in a news release.

S&P said the rating on McKesson reflects the company's position as one of the three largest U.S. drug distributors in a consolidated industry with high barriers to entry.

It also reflects an expectation that leverage will remain below 2.5x, the agency added.

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