Replies to post #434288 on $Stock*Shop*Charts*News*Option$

[Bunny]

see ya later kiddo... i nibble a risky we'll see

GERN i know i know.. but it's green and the chart saying a pop so we'll see.

[CohibaMan]

*sniff* G'Bye Stuff! We will miss you.

[EZ2]

WAG..Moody's Puts Walgreen On Review For Possible Downgrade


01/05 11:45 AM

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DOW JONES NEWSWIRES

Moody's Investors Service has placed Walgreen Co.'s (WAG:$32.70,00$-0.13,00-0.40%) ratings on review for a possible downgrade, following the drugstore chain's expiration of a contract with major customer Express Scripts Inc. (ESRX:$47.5623,$-0.2177,-0.46%) .

The ratings firm rates Walgreen's (WAG:$32.70,00$-0.13,00-0.40%) senior unsecured rating at A2, five notches into investment grade. Walgreen's (WAG:$32.70,00$-0.13,00-0.40%) ratings could be downgraded if it is unable to significantly make up for the profits associated with the Express Scripts' (ESRX:$47.5623,$-0.2177,-0.46%) contract by making further gains in the amount of prescriptions it is able to retain over the coming months.

Moody's noted Walgreen's (WAG:$32.70,00$-0.13,00-0.40%) contract with Express Scripts (ESRX:$47.5623,$-0.2177,-0.46%) , which expired at the end of the year, represented about 88 million prescriptions or $5.3 billion in revenue annually. Walgreen's (WAG:$32.70,00$-0.13,00-0.40%) has been left with a sizable amount of revenue at risk as customers representing only about 11% of the total prescriptions that Walgreen's (WAG:$32.70,00$-0.13,00-0.40%) filled annually under the Express Scripts (ESRX:$47.5623,$-0.2177,-0.46%) contract have taken steps to maintain access to Walgreen's (WAG:$32.70,00$-0.13,00-0.40%) pharmacies this year, Moody's said.

Walgreen's (WAG:$32.70,00$-0.13,00-0.40%) ratings could face further pressure if the pending merger between Express Scripts (ESRX:$47.5623,$-0.2177,-0.46%) and Medco Health Solutions Inc. (MHS:$58.85,00$-0.14,00-0.24%) is successful.

Earlier Thursday, Walgreen (WAG:$32.70,00$-0.13,00-0.40%) reported its same-store sales inched up 0.4% in December amid a milder flu season and the looming loss of Express Scripts (ESRX:$47.5623,$-0.2177,-0.46%) .

Walgreen (WAG:$32.70,00$-0.13,00-0.40%) last month unveiled a plan to cut costs to help protect profits in anticipation of client losses from the failure to renew a contract with pharmacy-benefits manager Express Scripts (ESRX:$47.5623,$-0.2177,-0.46%) . On Thursday, the company estimated the dispute negatively affected comparable prescriptions filled in December by roughly 1.5 percentage points.

Shares slid by 12 cents to $32.71 in recent trading. The stock is down 19% in the past 12 months.

--By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@ dowjones.com


(END) Dow Jones Newswires
01-05-121145ET
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