Moody's may up AmerisourceBergen

Moody's Investors Service said it placed the ratings of AmerisourceBergen Corp. (Ba2 senior implied) under review for possible upgrade due to continued debt reduction, reduced reliance on external liquidity sources and expectations of good free cash flow generation relative to debt.

Moody's believes that improved financial flexibility - achieved through sustained debt reduction - would help to offset the transition to a new business model and the loss of two key contracts. Further, the establishment of a new unsecured bank facility will be considered in this review.

Moody's affirmed the company's SGL-2 speculative grade liquidity rating.

Ratings placed under review for possible upgrade include AmerisourceBergen Corp.'s Ba3 senior unsecured notes, Ba3 issuer rating, and Ba2 senior implied rating; and Amerisource Health Corp.'s B1 rated 5% convertible subordinated notes due 2007.

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