S&P may lift PSS World

Standard & Poor's said it placed its BB- issue-level rating on the senior unsecured debt of PSS World Medical Inc. on CreditWatch with positive implications.

The recovery rating on this debt remains 6, indicating negligible recovery for noteholders in the event of a payment default.

The agency said it expects this transaction to result in its withdrawal of the corporate credit rating on PSS at close.

S&P said the CreditWatch placement follows the announcement that McKesson signed a definitive agreement to acquire PSS.

"The placement reflects our expectation that we would raise our issue-level ratings on PSS' debt if it is assumed by higher-rated McKesson," said S&P credit analyst Michael Kaplan in a news release.

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