Largest position in the high-growth chain drug retail industry based on sales and units; Leading position in the pharmacy benefit management (PBM) industry; Solid growth prospects; and Strong cash flow and good liquidity. Participates in a highly competitive industry; Integration risk of the CVS and Caremark merger; and Margins under pressure from PBMs and the government's Medicare and Medicaid programs. The ratings on Woonsocket, R.I.-based CVS/Caremark Corp. reflects its solid position in the favorably regarded drugstore industry, leading position as a pharmacy benefit manager (PBM), diverse cash flow stream, and generally good operating performance. These strengths are partially offset by the integration risk of the CVS and Caremark merger, its participation in the highly competitive retail pharmacy industry, and the
