Fitch places Express Scripts on watch

Fitch Ratings said it placed Express Scripts Inc.'s issuer default rating on Rating Watch negative following news that the company has entered into an agreement to acquire Medco Health Solutions for about $29.1 billion.

The transaction is expected to close in the first half of 2012.

The ratings associated with Medco Health also were placed on Rating Watch negative, Fitch said.

The negative watch recognizes the likely increase in leverage required to complete the transaction, the agency said.

Fitch said it believes the business combination is strategically sound, as it creates significant synergies, bringing together a focus on behavioral economics and optimal drug therapy protocols.

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