Research Update: Walgreens Boot Alliance Inc. Downgraded To 'BB-' On Weaker Forecast, Elevated Credit Metrics; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Walgreens Boot Alliance Inc. Downgraded To 'BB-' On Weaker Forecast, Elevated Credit Metrics; Outlook Stable

Research Update: Walgreens Boot Alliance Inc. Downgraded To 'BB-' On Weaker Forecast, Elevated Credit Metrics; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Walgreens Boot Alliance Inc. Downgraded To 'BB-' On Weaker Forecast, Elevated Credit Metrics; Outlook Stable
Published Dec 31, 2024
11 pages (4899 words) — Published Dec 31, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Deerfield, Ill.-headquartered Walgreens Boots Alliance Inc. (WBA) continues to face pressure from pharmacy reimbursement, soft demand in the front-of-store, and elevated shrink, among other challenges. WBA's S&P Global Ratings-adjusted debt to EBITDA was 5.8x in 2024 and we now expect it will remain high above 5x well into 2026. Therefore, we lowered our long-term issuer rating to 'BB-' from 'BB' and our issue-level rating on the company?s senior unsecured debt to ?BB-? from ?BB?. We lowered our issue-level rating on the company's senior unsecured debt to 'BB-'. We also corrected an error in our recovery analysis to now include operating subsidiary Walgreen Co.?s opioid litigation settlement liability, which we believe is structurally senior to the debt issued by the parent.

  
Brief Excerpt:

... Inc. (WBA) continues to face pressure from pharmacy reimbursement, soft demand in the front-of-store, and elevated shrink, among other challenges....

  
Report Type:

Research Update

Issuer
Walgreens Boots Alliance Inc.
GICS
Drug Retail (30101010)
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Walgreens Boot Alliance Inc. Downgraded To 'BB-' On Weaker Forecast, Elevated Credit Metrics; Outlook Stable" Dec 31, 2024. Alacra Store. May 06, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Walgreens-Boot-Alliance-Inc-Downgraded-To-BB-On-Weaker-Forecast-Elevated-Credit-Metrics-Outlook-Stable-3317213>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Walgreens Boot Alliance Inc. Downgraded To 'BB-' On Weaker Forecast, Elevated Credit Metrics; Outlook Stable Dec 31, 2024. New York, NY: Alacra Store. Retrieved May 06, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Walgreens-Boot-Alliance-Inc-Downgraded-To-BB-On-Weaker-Forecast-Elevated-Credit-Metrics-Outlook-Stable-3317213>
  
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