The ratings on Woonsocket, R.I.-based CVS/Caremark Corp. reflect its solid position in the favorably regarded drugstore industry, leading position as a pharmacy benefit manager (PBM), diverse cash flow stream, and generally good operating performance. These strengths are partially offset by the integration risk of the CVS and Caremark merger, the company's participation in the highly competitive retail pharmacy industry, and the uncertain impact of ongoing civil and governmental investigations into the practices of PBMs. CVS Pharmacy, with about 6,200 units, is the largest chain drug retailer in the U.S., based on sales and store count. Prescriptions, which constitute about 68% of the company's retail revenues, continue to drive growth and we expect them to do well, based on an aging
