S&P: Walgreen view to negative

Standard & Poor's said it revised the outlook on Walgreen Co. to negative from stable.

The agency also said it affirmed Walgreen's A corporate credit rating.

The outlook revision reflects the lack of progress in Walgreen's contract negotiations with Express Script, S&P said.

The negative outlook also incorporates the potential for earnings pressure in fiscal 2012 resulting in an erosion of credit protection measures if a contract renewal with Express Script is unsuccessful, the agency said.

The ratings also reflect the company's strong business profile supported by its strong competitive position and favorable industry fundamentals, S&P added.

Walgreen's strong business profile offsets credit protection measures that historically have been weak for the rating, the agency added.

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