...NEW YORK (S&P Global Ratings) May 3, 2016--S&P Global Ratings said today that CVS Health Corp.'s first-quarter 2016 results were consistent with our expectations. First-quarter results were strong with good growth in the pharmacy services segment as well as retail and long-term care segment, with some offsets from the impact of generic drug introductions. Despite sales leverage and improved front-end margins, company-reported operating profit margin declined to about 5.1% from 5.8% for the same quarter in 2015 on continued reimbursement rate and the impact of faster-growing, lower-margin PBM business. Our ratings on CVS (###+/Stable/A-2) are unaffected at this time. For full-year 2016, we anticipate adjusted EBITDA margin to contract slightly because of reimbursement rate pressures and PBM business growth. We think benefits from its long-term care business strategies (such as its clinical outreach programs), continued high retention rates, and integration of businesses acquired in 2015...
