S&P affirms Cardinal Health ratings |
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Mon, 14 May 2007 20:48
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NEW YORK (AP) - Standard & Poor's Ratings Services on Monday affirmed the ratings for medical products and services company Cardinal Health Inc., which plans to acquire medical technology company Viasys Healthcare Inc. for $1.42 billion.The affirmed ratings include the Dublin, Ohio-based company's 'BBB' corporate credit rating. The outlook remains positive, which means the ratings may be upgraded.Standard & Poor's said the ratings reflect the company's business diversity, financial health and its position among the top three drug distributors in the U.S. Cardinal, McKesson Corp. and AmerisourceBergen Corp. represent about 90 percent of the drug wholesaling sector, according to the ratings service.Standard & Poor's said the company's strength is partly offset by lower profitability under a new drug distribution model.Standard & Poor's said it 'believes Cardinal has more than adequate financial capacity at the current ratings level to pursue the large share repurchase programs and moderate sized acquisitions.'Standard & Poor's said Cardinal's cash flow is expected to exceed net income on an ongoing basis. Cardinal shares dipped 4 cents to $69.03 in afternoon trading.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Cardinal Health closes $3.3B unit sale 