Moody's rates Walgreen notes A1

Moody's Investors Service said it assigned an A1 rating to Walgreen Co.'s new $1.3 billion senior unsecured notes due in 2013.

The outlook is stable.

The agency said Walgreen's successful issuance of $1.3 billion of senior unsecured notes is a positive event for the company as it is terming out the commercial paper put in place to finance three acquisitions and hence extends the tenor of its capital structure.

Walgreen's A1 rating considers the company's large scale, strong market position in the retail pharmacy industry, successful track record of managing growth through superior real estate selections and strong supply chain management, Moody's said.

At the same time, the stable outlook acknowledges that Walgreen's leverage metrics continue to be weak for its rating category, the agency said. The debt-to-EBITDA ratio is 3.4 times.

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