The ratings on CVS Caremark Corp. reflect Standard&Poor's Ratings Services' assessment of a "strong" business risk profile and an "intermediate" financial risk profile. The business risk assessment is based on our expectations that CVS will continue to achieve solid operating performance due to strong revenue and profit growth. We also expect the company to maintain a moderate financial policy despite increases in share repurchases funded with free cash flow. We expect CVS to maintain its strong competitive position supported by its leading position in the drugstore industry (which we regard favorably) and solid position as a pharmacy benefits manager (PBM) company. CVS Pharmacy is the second-largest chain drug retailer in the U.S., with more than 7,300 units. Standard
