On April 25, 2006, Standard&Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on chain drug retailer, CVS Corp., to 'BBB+' from 'A-', At the same, Standard&Poor's affirmed the 'A-2' short-term rating on the Woonsocket, R.I.-based company. The corporate credit and senior unsecured debt ratings are removed from CreditWatch, where they were placed on Jan. 23, 2006, with negative implications. The outlook is stable. The downgrade reflects CVS's increased leverage due to its planned debt-financed acquisition of 700 stores under the Sav-on and Osco banners from Albertson's Inc. and its aggressive financial policy. Although the pending transaction strengthens CVS's competitive position, the $2.9 billion of additional debt to fund the acquisition weakens the
