The ratings on 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 company's participation in the highly competitive retail pharmacy industry, its more aggressive financial policy, and the uncertain impact of ongoing civil and governmental investigations into the practices of PBMs. CVS Caremark completed the acquisition of Longs Drug Stores for a total purchase price of $2.9 billion, including the assumption of net debt. Standard&Poor's Ratings Services expects Longs will be successfully integrated given CVS Caremark's track record in integrating acquired retail stores, and expect debt reduction to restore credit
