Fitch ups AmerisourceBergen

Fitch Ratings said it upgraded AmerisourceBergen Corp. by one notch to A- from BBB+.

The outlook was revised to stable from positive.

Ratings reflect the company's steady operating profile, commitment to strong leverage metrics, consistent and robust cash generation, and position as one of the three major drug distributors in the United States, the agency said.

Ratings are also supported by the expected impact on the profitability of the company and its peers from the unprecedented wave of branded pharmaceutical patent expiries set to continue into calendar 2013, as well as the company's market-leading position in specialty distribution, the agency added.

Pressuring the ratings are inherently low, although appropriate, operating margins and a lack of longer-term growth opportunities in the pure drug distribution space, Fitch said.

Debt-to-EBITDA leverage fell to 1.0 times at June 30, as a result of consistent EBITDA growth, the agency said.

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