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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of McKesson CorporationGlobal Credit Research - 01 Mar 2021New York, March 01, 2021 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of McKesson Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 23 February 2021 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.Key rating considerations are summarized below.McKesson's Baa2 senior unsecured rating benefits from a significant revenue base and the company's position as one of the nation's leading drug distributors. It also reflects Moody's view that, despite industrywide pressures, the large drug distributors will continue to play an important role in the US drug supply chain. McKesson's rating is further supported by Moody's expectation that the company will maintain moderate financial leverage, aided in part by its strong cash flow. However, McKesson is constrained by uncertainty surrounding its potentially large opioid litigation exposure. McKesson is also constrained by thin operating margins, as well as relatively high customer concentration. McKesson's retail pharmacy business outside the US adds geographic and business line diversity, but also the risks of operating in highly price-regulated markets.This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.The principal methodology used for this review was Distribution & Supply Chain Services Industry published in June 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Jonathan Kanarek, CFA VP - Senior Credit Officer Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. 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