On Feb. 13, 2007, Standard&Poor's Ratings Services revised the CreditWatch implications on CVS Corp.'s long-term ratings, including the 'BBB+' corporate credit rating, to developing from positive. The ratings were initially placed on CreditWatch Nov. 2, 2006, when Woonsocket, R.I.-based CVS announced a definitive agreement to merge with Caremark Rx Inc. (BBB/Stable/--). The 'A-2' short-term rating on CVS is not on CreditWatch. CreditWatch with developing implications indicates that we could either raise, lower, or affirm the ratings. The revision of the CreditWatch listings follows CVS's and Caremark's third proposal for the structure of their proposed merger. Under the revised terms, Caremark's shareholders will receive a special one-time cash dividend of $6 per share (about $1.72 billion). In addition, the
