CVS Health Corp.'s Proposed Senior Unsecured Notes Rated 'BBB' - S&P Global Ratings’ Credit Research

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

CVS Health Corp.'s Proposed Senior Unsecured Notes Rated 'BBB' - S&P Global Ratings’ Credit Research
CVS Health Corp.'s Proposed Senior Unsecured Notes Rated 'BBB'
Published May 07, 2024
4 pages (1664 words) — Published May 07, 2024
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About This Report

  
Abstract:

NEW YORK CITY (S&P Global Ratings) May 7, 2024-- S&P Global Ratings today assigned its 'BBB' issue-level rating to health solutions company CVS Health Corp.'s proposed senior unsecured notes. The company says it will use proceeds from these notes for general corporate purposes, which may include working capital, satisfying statutory capital requirements for regulated entities, capital expenditure, and repayment of indebtedness, which may include the aggregate principal amounts outstanding of senior notes that mature in 2024. We note the company's lackluster first-quarter 2024 earnings fell below our expectations. With these results, S&P Global Ratings-adjusted leverage (which factors in lease, opioid litigation-related and other adjustments) stands at about 4x for the latest 12 months ended March 31, 2024. We believe CVS

  
Brief Excerpt:

...NEW YORK CITY (S&P Global Ratings) May 7, 2024-- S&P Global Ratings today assigned its '###' issue-level rating to health solutions company CVS Health Corp.'s proposed senior unsecured notes. The company says it will use proceeds from these notes for general corporate purposes, which may include working capital, satisfying statutory capital requirements for regulated entities, capital expenditure, and repayment of indebtedness, which may include the aggregate principal amounts outstanding of senior notes that mature in 2024. We note the company's lackluster first-quarter 2024 earnings fell below our expectations. With these results, S&P Global Ratings-adjusted leverage (which factors in lease, opioid litigation-related and other adjustments) stands at about 4x for the latest 12 months ended March 31, 2024. We believe CVS will remain at 4x in fiscal 2024 but bring leverage down back toward 3.5x in 2025. The '###' issuer credit rating on CVS is thus unaffected at this time. Importantly, CVS...

  
Report Type:

Ratings Action

Ticker
CVS
Issuer
CVS Health Corp.
GICS
Health Care Services (35102015)
Sector
Global Issuers , Structured Finance
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "CVS Health Corp.'s Proposed Senior Unsecured Notes Rated 'BBB'" May 07, 2024. Alacra Store. May 03, 2025. <http://www.alacrastore.com/s-and-p-credit-research/CVS-Health-Corp-s-Proposed-Senior-Unsecured-Notes-Rated-BBB-3166044>
  
APA:
S&P Global Ratings’ Credit Research. (). CVS Health Corp.'s Proposed Senior Unsecured Notes Rated 'BBB' May 07, 2024. New York, NY: Alacra Store. Retrieved May 03, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/CVS-Health-Corp-s-Proposed-Senior-Unsecured-Notes-Rated-BBB-3166044>
  
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