Largest position in the high-growth chain drug retail industry based on sales and units; Leading position in the PBM industry; Solid growth prospects; and Strong cash flow and good liquidity. Participates in a highly competitive industry; History of acquisitions; Margins under pressure from PBMs and the government's Medicare and Medicaid programs. The ratings on CVS Caremark Corp. reflect the company's solid position in the favorably regarded drugstore industry, leading position as a pharmacy benefit management (PBM) company, diverse cash flow stream, and generally good operating performance. The company's participation in the highly competitive retail pharmacy industry, its more aggressive financial policy, possible future difficulties in retaining PBM customers, and the uncertain effect of ongoing civil and governmental investigations into the
