Bulletin: CVS Health Corp. Leverage Will Be Weak In The Near Term; Long-Term Metrics In Line With Rating - S&P Global Ratings’ Credit Research

Bulletin: CVS Health Corp. Leverage Will Be Weak In The Near Term; Long-Term Metrics In Line With Rating

Bulletin: CVS Health Corp. Leverage Will Be Weak In The Near Term; Long-Term Metrics In Line With Rating - S&P Global Ratings’ Credit Research
Bulletin: CVS Health Corp. Leverage Will Be Weak In The Near Term; Long-Term Metrics In Line With Rating
Published Oct 18, 2024
2 pages (1185 words) — Published Oct 18, 2024
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Abstract:

NEW YORK (S&P Global Ratings) Oct. 18, 2024--S&P Global Ratings today said that it expects CVS Health Corp.'s (BBB/Negative/A-2) leverage to spike in 2024, improving to mid- to low-3x in 2026. Metrics in 2025 and 2026 are largely in line with our previous expectations, and our ratings on the company remain unchanged. This follows the company's announcement that it is replacing its CEO Karen Lynch with David Joyner, who served as a senior executive with CVS' prescription benefit manager, Caremark, and also has experience with Aetna. In addition, the company suspended its guidance for the remainder of 2024, and its preliminary results for the third quarter were below expectations, citing pressure in its Aetna business and restructuring expenses. Our negative

  
Brief Excerpt:

...October 18, 2024 NEW YORK (S&P Global Ratings) Oct. 18, 2024--S&P Global Ratings today said that it expects CVS Health Corp.'s (###/Negative/A-2) leverage to spike in 2024, improving to mid- to low-3x in 2026. Metrics in 2025 and 2026 are largely in line with our previous expectations, and our ratings on the company remain unchanged. This follows the company's announcement that it is replacing its CEO Karen Lynch with David Joyner, who served as a senior executive with CVS' prescription benefit manager, Caremark, and also has experience with Aetna. In addition, the company suspended its guidance for the remainder of 2024, and its preliminary results for the third quarter were below expectations, citing pressure in its Aetna business and restructuring expenses. Our negative outlook reflects heighted risk to our base case. For 2024, we now anticipate weaker S&P Global Ratings-adjusted debt to EBITDA of low-5x, including the $1.2 billion restructuring charge, which is large and one-time in...

  
Report Type:

Bulletin

Ticker
CVS
Issuer
CVS Health Corp.
GICS
Health Care Services (35102015)
Sector
Global Issuers , Structured Finance
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: CVS Health Corp. Leverage Will Be Weak In The Near Term; Long-Term Metrics In Line With Rating" Oct 18, 2024. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-CVS-Health-Corp-Leverage-Will-Be-Weak-In-The-Near-Term-Long-Term-Metrics-In-Line-With-Rating-3270865>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: CVS Health Corp. Leverage Will Be Weak In The Near Term; Long-Term Metrics In Line With Rating Oct 18, 2024. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-CVS-Health-Corp-Leverage-Will-Be-Weak-In-The-Near-Term-Long-Term-Metrics-In-Line-With-Rating-3270865>
  
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