Moody's affirms Cardinal Health

Moody's Investors Service said it affirmed Cardinal Health's ratings (Baa2 long-term and Prime-2 short-term ratings) following the company's announcement that it plans to acquire Enturia Inc. for $490 million in cash.

The outlook is stable.

In Moody's opinion, although this is occurring relatively soon after the Viasys transaction, the funding of Enturia with existing cash should enable Cardinal to maintain credit ratios that are consistent with a Baa2 rating.

Importantly, the agency said that the affirmation of the ratings and stable outlook further anticipate that Cardinal will curtail its spending on buybacks in order to adhere to cash flow deployment targets that are in line with previously articulated levels.

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