The ratings on San Francisco, Calif.-based drug distributor McKesson Corp. reflect Standard & Poor's Ratings Services' expectation for high-single-digit revenue growth in fiscal 2012, largely because of the impact of acquisitions and the strong performance of the company's technology solutions business. We believe revenue growth will decline to low single digits in fiscal 2013, in line with our expectations for the pharmaceutical distribution industry. We believe revenues will be hurt by the conversion of branded drugs to generic, but expect this to help operating margins. We project a 10-basis-point annual improvement in margin beginning in fiscal 2013. McKesson has industry-leading margins, largely because of its higher-margin technology solutions business. The company's "satisfactory" business risk profile (as we define the term)...
Companies mentioned in this report are: McKesson Corp.
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