Moody's upgrades AmerisourceBergen

Moody's Investors Service said it upgraded AmerisourceBergen Corp.'s corporate family rating to Ba1 from Ba2.

The speculative grade liquidity rating of SGL-1 is affirmed.

The outlook is stable.

Moody's said this rating action is based on expectations that drug-distribution margins - though significantly lower under a new fee-for-service business model - will be sufficient to sustain current cash flow levels; the company has enough cash resources to support its shareholder initiatives - including buybacks and moderate-sized acquisitions, and as a result; debt levels should remain relatively steady.

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