Fitch rates McKesson notes BBB+

Fitch Ratings said it assigned a BBB+ rating to McKesson Corp.'s new $700 million and $400 million senior unsecured notes.

Fitch said it expects the combined $1.1 billion in proceeds will be used to repay the $1.1 billion notes due March 2019, which allows the company to remain within the current downgrade rating sensitivity.

The ratings benefit from a stable operating profile and consistent cash generation, the agency said.

Steady pharmaceutical demand, oligopolistic drug distribution industry in the United States and, for the most part, in Western Europe, are the key drivers, Fitch said.

The agency also said it expects McKesson to continue holding leading market positions in pharmaceutical and non-acute care medical distribution.

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