NEW YORK – Moody’s Investors Service – a globally recognized rating agency – has upgraded the outlook of CVS Caremark Corp. from “stable” to “positive.”
The company retained its senior unsecured rating of “Baa2” and its short-term investment rating of “P-2.”
“The outlook change recognizes the strong operating performance at CVS Caremark’s pharmacy benefits manager and retail drug stores,” said the Moody’s report.
According to Moody’s, the pharmacy benefits manager is generating “sizable growth” on contract renewals and the signing of an Aetna contract.
The drugstore segment is generating strong sales bolstered by contract problems between Walgreen Pharmacy and ExpressScripts, said the report.
The outlook upgrade also acknowledged the close of the FTC investigation into CVS Caremark’s business practices, with only a “minor” $5 million fine for practices at Long’s Drugstore prior to its acquisition by CVS, said the report.