U.S.-based CVS Health Corp. announced its intention to separate its insurance, pharmacy benefit manager (PBM), specialty, and value-based care businesses, CVS Health, from its pharmacy business, CVS Pharmacy, with the intention to close the transaction in first half of 2028. CVS Health will remain under the current CVS Health Corp. parent entity and CVS Pharmacy will spin off to a new entity that is not yet rated. We expect to rate CVS Health as an insurance business once CVS Pharmacy is capitalized separately. We would likely view CVS Pharmacy, if rated, as a retail entity. We could affirm our rating on CVS Health or raise it up to two notches based on Aetna’s current very strong competitive position, but definitive
