- Walgreen, Morningstar Corporate Credit Rating BBBMorningstar doesn't believe the bond market is adequately pricing in the risks associated with Walgreen's option to purchase the rest of Alliance Boots, which could significantly lever up the balance sheet, or the firm's weakening position in the drug supply chain, which is highlighted by its negative Economic Moat Trend rating.
- Directv, Morningstar Corporate Credit Rating BBBMorningstar believes that management's consistent adherence to a leverage target of 2.5 times EBITDA and the potential for change in the television business over the next several years could cause cash flow and credit metrics to deteriorate, pulling spreads wider still.
- Pitney Bowes, Morningstar Corporate Credit Rating BBB-In late 2011, Morningstar downgraded its credit rating on Pitney Bowes to BBB- following its decision to lower the Economic Moat rating on the company from Narrow to None, and believes that continued investments in Pitney's no-moat business lines may further dilute the company's remaining competitive advantages over time, leading to steadily declining credit fundamentals.
Morningstar Publishes List Of Corporate Bonds To Avoid
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