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Maintenance of an 'A-' IDR for MCK will require debt-to-EBITDA of 1.4x or below. The ratings could be maintained if acquisition funding results in temporary increases above this range, depending on the company's ability and willingness to de-lever (e.g. the recent PSS World Medical, Inc. acquisition). Based on a preliminary analysis of the potential acquisition of Celesio by MCK, Fitch expects debt-to-EBITDA will be sustained above 1.4x for an extended period. Consequently, a downgrade of MCK's long-term ratings is likely, pending the successful consummation of the deal.
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