New York, March 02, 2016 -- On 2 March 2016, McKesson Corporation (Baa2 stable) announced that it plans to acquire Rexall Health, comprised of 470 pharmacies in Canada, from Katz Group for CAD$3 billion or about US $2.2 billion. Moody's views this transaction as credit negative because it will raise leverage and will further expose McKesson to a more restrictive regulatory environment. However, this development does not have an effect on McKesson's ratings or outlook at this time. For additional information, please refer to Moody's Issuer Comment on McKesson on www.moodys.com.

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