Moody's rates Express Scripts facility Ba1

Moody's Investors Service said it confirmed the ratings (Ba1 senior implied) of Express Scripts Inc. and assigned ratings of Ba1 to Express Scripts' proposed new secured bank credit facilities.

The outlook remains positive.

Express Scripts' proposed refinancing consists of a $200 million term loan A facility, a $200 million term loan B facility, and a $400 million revolving credit facility. The refinancing is being performed in conjunction with Express-Scripts' pending acquisition of CuraScript Pharmacy Inc. and CuraScript PBM Services Inc. for about $335 million of cash.

Moody's said this transaction significantly bolsters Express Scripts' position in the specialty pharmaceutical business, providing a strong platform for growth. At the close of the transaction, Moody's said it anticipates that Express Scripts debt levels will total about $700 million and that pro forma debt to EBITDA will be about 1.4 times.

Moody's said Express Scripts' positive rating outlook reflects its solid operating performance, its good free cash flow generation, and its favorable credit metrics. Moody's noted it expects a continuation of this performance, placing the company in a position to attain a potential upgrade to an investment-grade rating.

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