Strong competitive position as the largest integrated pharmacy company in the favorably regarded U.S. drugstore industry; Unique integrated prescription access model, combining retail and mail order, enhances access and differentiates the company from standalone drugstores or pharmacy benefit managers (PBMs); and Consistent and solid sales and earnings growth. Commitment to maintaining current debt leverage target; Diverse cash flow stream from its retail and PBM businesses; Strong free cash flow generation; and Substantial share repurchase program and dividend payout, consuming most of CVS' free cash flow. The stable rating outlook on CVS Health Corp. reflects our expectations that credit measures will improve modestly in 2014, given improving profitability from healthy sales growth, especially in the PBM segment, and pharmacy volume growth.
