Moody’s might cut Walgreen

Moody's Investors Service said it placed Walgreen Co.'s Baa1 senior unsecured rating on review for downgrade.

The Prime-2 commercial paper rating was affirmed.

Moody’s said the review for downgrade was prompted by Walgreen's announcement of a $3 billion share repurchase program through the end of 2016. The review was also prompted by Walgreen's reduced 2016 operating outlook. Moody's estimates that Walgreen's 2016 EPS guidance of $4.25 to $4.60 per share is roughly 20% below its previous 2016 operating income target.

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