Research Update: CVS Health 'BBB+' Long-Term Ratings Put On Watch Negative On Announced Acquisition Of Aetna; One-Notch Downgrade Likely - S&P Global Ratings’ Credit Research

Research Update: CVS Health 'BBB+' Long-Term Ratings Put On Watch Negative On Announced Acquisition Of Aetna; One-Notch Downgrade Likely

Research Update: CVS Health 'BBB+' Long-Term Ratings Put On Watch Negative On Announced Acquisition Of Aetna; One-Notch Downgrade Likely - S&P Global Ratings’ Credit Research
Research Update: CVS Health 'BBB+' Long-Term Ratings Put On Watch Negative On Announced Acquisition Of Aetna; One-Notch Downgrade Likely
Published Dec 04, 2017
5 pages (1662 words) — Published Dec 04, 2017
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

U.S. pharmacy services and drugstore retailer CVS Health Corp. has announced that it intends to purchase health insurance provider Aetna Inc. for about $69 billion, the majority of which will be funded with debt. CVS expects the transaction to close in the second half of 2018, subject to shareholder and regulatory approvals. In our view, CVS' financial risk profile will weaken considerably as a result of the significant increase in debt, given the scale of the acquisition as well as execution risks that could affect operating performance. We are placing our 'BBB+' long-term ratings on CVS and its debt on CreditWatch negative and affirming our 'A-2' short-term ratings. We intend to resolve the CreditWatch, likely by lowering the corporate credit

  
Brief Excerpt:

...U.S. pharmacy services and drugstore retailer CVS Health Corp. has announced that it intends to purchase health insurance provider Aetna Inc. for about $69 billion, the majority of which will be funded with debt....

  
Report Type:

Research Update

Ticker
CVS
Issuer
CVS Health Corp.
GICS
Health Care Services (35102015)
Sector
Global Issuers , Structured Finance
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: CVS Health 'BBB+' Long-Term Ratings Put On Watch Negative On Announced Acquisition Of Aetna; One-Notch Downgrade Likely" Dec 04, 2017. Alacra Store. May 04, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-CVS-Health-BBB-Long-Term-Ratings-Put-On-Watch-Negative-On-Announced-Acquisition-Of-Aetna-One-Notch-Downgrade-Likely-1960972>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: CVS Health 'BBB+' Long-Term Ratings Put On Watch Negative On Announced Acquisition Of Aetna; One-Notch Downgrade Likely Dec 04, 2017. New York, NY: Alacra Store. Retrieved May 04, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-CVS-Health-BBB-Long-Term-Ratings-Put-On-Watch-Negative-On-Announced-Acquisition-Of-Aetna-One-Notch-Downgrade-Likely-1960972>
  
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