Fitch affirms AmerisourceBergen

Fitch Ratings said it affirmed AmerisourceBergen Corp.'s BBB- rated senior unsecured debt and bank credit facility and BB+ rated subordinated debt following the company's announcement that it has received board authorization to repurchase $500 million in company stock.

The outlook is stable.

Fitch said it anticipates that the share repurchase will be funded with cash and cited that AmerisourceBergen's cash flow generation has far-exceed expectations stemming from the conversion to a more fee-for-service oriented business model as inventory previously held in anticipation of price increases is being liquidated. The surge in cash flow allows the company the financial flexibility to repurchase shares without materially impacting the company's credit profile.

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