...December 3, 2024 NEW YORK (S&P Global Ratings) Dec. 3, 2024--S&P Global Ratings today assigned its '##+' issue-level rating to CVS Health Corp.'s proposed junior subordinated notes due 2054. We are assigning intermediate equity content to this hybrid issuance primarily because it can absorb losses by allowing interest deferral, is subordinate to all senior debt obligations, and has characteristics of permanence. The company intends to use the proceeds for general corporate purposes and to purchase the notes being tendered, which include senior unsecured notes across various maturities. The transaction will result in a lower S&P Global Ratings-adjusted debt balance because we only include 50% of the principal in our adjusted debt calculation. Additionally, there will be a small amount of incremental deleveraging because a portion of the tendered debt will likely be redeemed below par. The transaction will boost liquidity as a portion of the proceeds will be used to retire some of the nearly...
