Moody's: AmerisourceBergen's Amended Contract with Walgreens, Lower Earnings and Share Buybacks Are Credit Negative

New York, May 06, 2016 -- On 5 May 2016, AmerisourceBergen Corporation (ABC) (Baa2 negative) announced that it has amended terms of its distribution contract with Walgreens Boots Alliance, Inc. (Baa2 ratings on review down). At the same time, it revised earnings guidance downward due to generic price deflation and headwinds from several large contract renewals. Finally, the company indicated that it plans to repurchase additional common shares. Moody's views these developments as credit negative because they will delay deleveraging, but they do not affect ABC's ratings or outlook at this time. For additional information, please refer to Moody's Issuer Comment on AmerisourceBergen on www.moodys.com.

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