...January 31, 2025 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Jan. 31, 2025--S&P Global Ratings today said Walgreens Boots Alliance Inc.'s (##-/Stable/B) suspension of its dividend is a credit positive but does not meaningfully improve its credit metrics over the next two years. That said, we expect the suspension of the dividend to soften a cash flow deficit in 2025 and allow for debt reduction in 2026. We estimate the improved cash flow available to repay debt by suspending the dividend will result in about 0.1x lower adjusted debt to EBITDA in 2025 and 2026. We now expect adjusted debt to EBITDA of 5.4x in 2025 and 4.8x in 2026. Our ratings continue to primarily reflect Walgreens' elevated credit metrics and the uncertainty of its ability to improve EBITDA and reduce debt significantly over the next two to three years. We see uncertainty in the unfavorable reimbursement dynamics in the U.S. pharmacy business, the cautious consumer affecting retail sales,...
