Fitch Rts Cardinal Health's Extendible Comm Notes `F1'.Business Editors
CHICAGO--(BUSINESS WIRE)--Nov. 22, 2000
Fitch has assigned an `F1' rating to Cardinal Health <includeonly></includeonly>
Cardinal Health (NYSE: CAH) is a premier, global healthcare company dedicated to making healthcare safer and more productive. Overview
Headquartered in Dublin, Ohio, Cardinal Health, Inc. Inc.'s extendible commercial notes (ECN (Electronic Communications Network) A computerized, private financial trading system. Terra Nova Trading (www.terranovatrading.com) and Instinet (www.instinet.com) are examples. ) program.
At the same time, Fitch has affirmed af·firm
v. af·firmed, af·firm·ing, af·firms
1. To declare positively or firmly; maintain to be true.
2. To support or uphold the validity of; confirm.
v.intr. Cardinal's `A' rated senior unsecured debt Unsecured debt
Debt that does not identify specific assets that the debtholder is entitled to in case of default. and bank credit facility and Cardinal's `F1' commercial paper rating. The Credit Outlook is Stable.
The $200 million ECN program will provide Cardinal additional liquidity and flexibility for its working capital financing requirements. Short-term liquidity is a key tool for Cardinal, primarily in its Pharmaceutical Distribution and Provider segment, which makes significant use of bulk and forward buying strategies.
Cardinal's long- and short-term ratings reflect the company's established market position, stable margins and strong balance sheet. Cardinal, by virtue of its manufacturing capabilities, medical surgical distribution strength (through its Allegiance subsidiary) and more services targeting pharmaceutical manufacturers (as opposed to retail customers) is generally better diversified diversified (di·verˑ·s and capable of generating stronger margins than some of the company's primary competitors.
In addition, Cardinal has been successful integrating recent acquisitions. Both R.P. Scherer and Allegiance were sound strategic moves that provided diversification to the company's business model and had the desired effect of stabilizing stabilizing,
v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. and improving margins.