Fitch rates McKesson notes BBB+

Fitch Ratings said it assigned a BBB+ rating to McKesson Corp.'s offering of floating- and fixed-rate notes.

The agency expects proceeds to be used for a cash tender offer for up to $1.1 billion of the company’s outstanding notes and debentures and for general corporate purposes.

At the same time, Fitch affirmed McKesson’s long-term issuer default rating at BBB+ and short-term issuer default rating at F2

Fitch said the credit profiles of McKesson and its peers benefit from stable operating profiles and consistent cash generation.

Steady pharmaceutical demand, an oligopolistic drug distribution industry in the U.S. and, for the most part, Western Europe, as well as insulation from most drug pricing and regulatory pressures, support strong ratings despite low margins, the agency explained.

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