Research Update: CVS Health Corp. Outlook Revised To Negative On Lower Full-Year Guidance; 'BBB' Ratings Affirmed - S&P Global Ratings’ Credit Research

Research Update: CVS Health Corp. Outlook Revised To Negative On Lower Full-Year Guidance; 'BBB' Ratings Affirmed

Research Update: CVS Health Corp. Outlook Revised To Negative On Lower Full-Year Guidance; 'BBB' Ratings Affirmed - S&P Global Ratings’ Credit Research
Research Update: CVS Health Corp. Outlook Revised To Negative On Lower Full-Year Guidance; 'BBB' Ratings Affirmed
Published Aug 22, 2024
7 pages (2899 words) — Published Aug 22, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

CVS Health Corp. recently reported second quarter results and lowered 2024 full-year guidance, including for earnings and cash flow from operations, that is below our expectations. The company is seeing pressure particularly in its health care benefits segment (Aetna), and announced the head of the business is leaving after less than a year and will be replaced with CVS CEO and President Karen Lynch. We are revising our outlook to negative from stable and affirming all our ratings on CVS, including our 'BBB' issuer credit and issue-level ratings. Our rating on the company's commercial paper remains 'A-2'. The negative outlook reflects that with recent earnings and financial policy guidance, we see elevated risk to our base case and the potential

  
Brief Excerpt:

...- CVS Health Corp. recently reported second quarter results and lowered 2024 full-year guidance, including for earnings and cash flow from operations, that is below our expectations. - The company is seeing pressure particularly in its health care benefits segment (Aetna), and announced the head of the business is leaving after less than a year and will be replaced with CVS CEO and President Karen Lynch. - We are revising our outlook to negative from stable and affirming all our ratings on CVS, including our '###' issuer credit and issue-level ratings. Our rating on the company's commercial paper remains 'A-2'. - The negative outlook reflects that with recent earnings and financial policy guidance, we see elevated risk to our base case and the potential for operating weakness to result in adjusted debt to EBITDA sustained at approximately 4x....

  
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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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: CVS Health Corp. Outlook Revised To Negative On Lower Full-Year Guidance; 'BBB' Ratings Affirmed" Aug 22, 2024. Alacra Store. May 02, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-CVS-Health-Corp-Outlook-Revised-To-Negative-On-Lower-Full-Year-Guidance-BBB-Ratings-Affirmed-3235110>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: CVS Health Corp. Outlook Revised To Negative On Lower Full-Year Guidance; 'BBB' Ratings Affirmed Aug 22, 2024. New York, NY: Alacra Store. Retrieved May 02, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-CVS-Health-Corp-Outlook-Revised-To-Negative-On-Lower-Full-Year-Guidance-BBB-Ratings-Affirmed-3235110>
  
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