S&P may lower Walgreen

Standard & Poor's said it placed Walgreen Co.'s A+ corporate credit rating on CreditWatch with negative implications following news that it plans to acquire Duane Reade Holdings Inc. for $1.075 billion, which includes the assumption of about $457 million of debt and operating leases. Its short-term rating is affirmed at A-1.

If the acquisition is completed as contemplated, the downgrade would be limited to one notch, S&P said.

The negative watch reflects the probability that credit measures will not improve to levels previously expected because of the costs related to the acquisition, the agency said.

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