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. Standard&Poor's Ratings Services expects the new Longs Drugs Stores to be successfully integrated, given CVS Caremark's track record in integrating acquired retail stores. We believe the addition of over 500 Longs stores is largely complementary to CVS Caremark's existing store base and provides an entry into key markets in
