The long-term ratings on Woonsocket, R.I.-based drugstore retailer CVS Corp. remain on CreditWatch with positive implications, where they were placed in November 2006. The CreditWatch action followed the company's Nov. 2, 2006, announcement of a definitive agreement to merge with Nashville, Tenn.-based Caremark Rx Inc. (BBB/Stable/--). Under the terms of the agreement, Caremark shareholders will receive 1.67 shares of CVS for each share of Caremark. Pro forma for the transaction, CVS' shareholders will own 54% of the combined company and Caremark's shareholders will own 46%. The new company will be called CVS/Caremark Corp. The transaction is subject to stockholder approvals from both companies as well as regulatory approval, and is expected to close in six to 12 months. The proposed
