S&P gives Cardinal Health notes A-

Standard & Poor's said it assigned its A- issue-level rating to Cardinal Health Inc.'s proposed $1.5 billion senior unsecured note offering.

The notes will be issued in three tranches due in three, 10 and 30 years.

Proceeds will be used to partly finance the acquisitions of Cordis and Harvard Drug Group LLC.

S&P said the A- corporate credit rating reflects Cardinal Health’s "satisfactory" business risk profile, underpinned by the company's important position as one of the three largest drug distributors and the high barriers to entry in that industry.

The agency’s assessment of business risk remains unchanged following the acquisitions of Cordis and Harvard Drug.

Cardinal's existing pharmaceutical distribution business has significant size and scale and these two acquisitions are not sizable enough to materially affect S&P’s perception of scale.

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