Moody's: Express notes at Baa3

Moody's Investors Service said it assigned a Baa3 rating to Express Scripts Inc.'s new note offering and changed the company's outlook to positive from stable. Moody's affirmed Express Scripts' existing senior ratings at Baa3.

Proceeds will be used to fund share buybacks and general corporate purposes.

Despite the increase in debt, Moody's said it expects Express Scripts' credit metrics to improve over the next 12 to 18 months due to both growth in EBITDA and the repayment of debt.

The positive outlook reflects generally good operating trends and the belief that solid free cash flow generation, which should be stronger during the second half of 2011, could help support future buybacks, moderate-sized acquisitions and the repayment of its upcoming note maturity, the agency said.

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