Moody's ups AmerisourceBergen view to positive

Moody's Investors Service said it affirmed AmerisourceBergen Corp.'s debt ratings and Ba2 corporate family rating and changed the outlook to positive from stable.

The change in outlook is based on Moody's belief that the transition to a fee-for-service business model is largely behind the company and core distribution margins are now stable to improving; cash flow relative to current debt levels is expected to remain solid despite very low drug distribution margins and challenges faced in the PharMerica segment and the company's strong liquidity position offers significant flexibility.

Affirmed ratings include the senior unsecured notes at Ba2 and SGL-1 speculative-grade liquidity rating.

The agency added the company's Ba2 rating primarily reflects a leading position but high reliance on drug distribution - a sector that is beginning to see stabilization after having undergone a major transition over the past two years.

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