On Nov. 2, 2006, Standard&Poor's Ratings Services placed its long-term ratings, including the 'BBB+' long-term corporate credit rating, on CVS Corp. on CreditWatch with positive implications. The 'A-2' short-term rating on the company was affirmed (this rating was not placed on CreditWatch). The CreditWatch action follows the Woonsocket, R.I.-based chain drug retailer's announcement that it has entered into a definitive agreement to merge with Nashville, Tenn.-based Caremark Rx Inc. (BBB/Stable/--). Under the terms of the agreement, Caremark shareholders will receive 1.67 shares of CVS for each share of Caremark. Pro forma for the transaction, CVS' shareholders will own 54% of the combined company and Caremark's shareholders will own 46%. The new company will be called CVS/Caremark Corp. The
