Fitch lowers Walgreens Boots view to negative

Fitch Ratings said it affirmed all of the ratings on Walgreens Boots Alliance, including its BBB long-term issuer default rating.

The outlook also was revised to negative from stable.

The negative outlook reflects weaker-than-expected operating results with EBITDA forecast to trend to the low $8 billion range in fiscal 2019, down about 10% from fiscal 2018, Fitch said.

This is a significant shortfall from prior expectations of a mid-single digit increase compared with fiscal 2018, the agency said.

The EBITDA shortfall is largely due to lower reimbursement rates in the pharmacy and weaker-than-expected generic prescription pricing trends, Fitch said.

The ratings also reflect the company's leading position in the drugstore industry, which should enable it to maintain or grow share in the U.S. pharmaceutical industry, the agency said.

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