DBRS Rates McKesson Corp.’s $700 Million Senior Notes Offering at BBB (high), Positive Trend

DBRS has today assigned a rating of BBB (high) with a Positive trend to McKesson Corporation’s (McKesson or the Company) issue of the following Senior Unsecured Notes (Notes):

(1) $350 million, 6.5% five-year notes maturing February 15, 2014 and;
(2) $350 million, 7.5% ten-year notes maturing February 15, 2019.

The Notes will rank pari passu with McKesson’s other senior unsecured indebtedness. DBRS expects McKesson will use the proceeds from the offering for general corporate purposes.

Assuming the proceeds are not used for debt reduction, the Notes issue will result in a modest increase in leverage. DBRS notes that pro-forma leverage in such a scenario has been factored into the current ratings and would not affect the Positive trend.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Consumer Products which can be found on our website under Methodologies.

This is a Corporate rating.