CVS Health Corp.'s Proposed Senior Unsecured Notes Rated 'BBB+'

NEW YORK (S&P Global Ratings) May 16, 2016--S&P Global Ratings today assigned its 'BBB+' issue-level rating to CVS Health Corp.'s proposed senior unsecured notes. The company plans to use the net proceeds from the offering for general corporate purposes including the refinancing of certain outstanding debt. CVS (BBB+/Stable/A-2) has successfully strengthened its competitive position and diversified its revenues and cash flow streams through the growth of its retail pharmacy, pharmacy benefits management services, and specialty pharmacy segments. It has a good track record of operating performance,which we expect to continue despite reimbursement rate pressures and the impact of generic drug introductions. The integration of Target pharmacies and Omnicare business it acquired in 2015 is proceeding well and the company is

...NEW YORK (S&P Global Ratings) May 16, 2016--S&P Global Ratings today assigned its '###+' issue-level rating to CVS Health Corp.'s proposed senior unsecured notes. The company plans to use the net proceeds from the offering for general corporate purposes including the refinancing of certain outstanding debt. CVS (###+/Stable/A-2) has successfully strengthened its competitive position and diversified its revenues and cash flow streams through the growth of its retail pharmacy, pharmacy benefits management services, and specialty pharmacy segments. It has a good track record of operating performance,which we expect to continue despite reimbursement rate pressures and the impact of generic drug introductions. The integration of Target pharmacies and Omnicare business it acquired in 2015 is proceeding well and the company is achieving its target cost and sourcing synergies. We believeperformance gains will help the company generate about $7.7 billion of operating cash flow and nearly $5.5 billion...

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