S&P rates Express Scripts notes BBB

Standard & Poor's said it assigned a preliminary BBB senior unsecured rating and preliminary BBB- subordinated rating to debt securities filed by Express Scripts Inc. (BBB/stable) as part of a Rule 415 shelf registration.

Proceeds will be used to issue senior unsecured notes from the company's shelf filing in the near term.

The agency said it believes that Express Scripts will not issue debt that will stretch its debt-to-EBITDA ratio to much more than 2x for an extended period.

S&P said it expects proceeds to be used to provide some of the financing for Express Scripts' proposed acquisition of WellPoint Inc.'s NextRx pharmacy benefits management subsidiaries for $4.675 billion.

The agency said it does not believe that the transaction will overly burden Express with debt but that it should improve the company's negotiating leverage with its customers and manufacturers through increased scale.

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