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Fitch Ratings weighs in on Walgreens after Rite Aid decision

Published 06/29/2017, 02:33 PM
© Reuters.  Fitch Ratings weighs in on Walgreens after Rite Aid decision
WBA
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  • Fitch Ratings affirms a BBB default credit rating on Walgreen Boots Alliance (WBA +1.2%) after factoring in the company's decision to buy 2,186 Rite Aid stores, instead of the entire company.
  • The ratings agency says the move is neutral to its credit profile on Walgreens, but is seen as a strategic positive for the drug store operator.
  • "Given the significantly reduced purchase price, pro forma adjusted debt/EBITDAR is expected to remain around 3.3x, similar to latest 12-month levels (excluding funded debt associated with the proposed Rite Aid acquisition). Fitch expects adjusted leverage to remain near these levels over the next 24-36 months, absent further investment opportunities."
  • Full Fitch Ratings report on WBA
  • Now read: Walgreens Boots Alliance: A Critical Assumption Made


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