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; History of acquisitions; and Margins under pressure from PBMs and the government's Medicare and Medicaid programs. The ratings on CVS Caremark Corp. reflect 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 company's participation in the highly competitive retail pharmacy industry, its more aggressive financial policy, and the uncertain impact of ongoing civil and governmental investigations into
