Fitch rates McKesson notes A-

Fitch Ratings said it assigned an A- rating to McKesson Corp.'s planned issuance of $900 million of new senior unsecured notes.

Proceeds will be used to repay amounts drawn on the company's bridge facility to finance the purchase of PSS World Medical Inc. in February.

The outlook is stable.

Fitch said one of the key rating drivers is that it believes the recently closed acquisition of PSS World is strategically sound and was financed responsibly, though temporarily pushing reported debt leverage outside the range appropriate for McKesson's A- ratings.

EBITDA growth and the recent repayment of maturing notes are expected to cause debt leverage to moderate to 1.4 times or below by the end of McKesson's fiscal 2014 (March 31), the agency added.

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