S&P affirms AmerisourceBergen

Standard & Poor’s said it affirmed its A- corporate credit rating on AmerisourceBergen Corp. and affirmed the A-2 short-term rating and A- issue-level rating.

The outlook is stable.

“The rating affirmation follows the company’s announcement that it will be acquiring Idaho-based MWI Veterinary Supply Inc. [unrated] for $2.5 billion,” said S&P credit analyst Michael Berrian in a news release.

“We believe that ABC has the capacity to fund this acquisition with $2.15 billion of debt, without impairing the rating, because the company has exceeded performance expectations and we believe it will reduce leverage quickly. Under this scenario, we estimate that pro forma leverage would increase to 1.5x, from 0.6x at Sept. 30, 2014.”

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