Moody’s assigns Baa2 to CVS Health notes

Moody's Investors Service said it assigned a Baa2 rating to CVS Health’s proposed senior note offering.

“CVS Health's Baa2 senior unsecured rating reflects the significant increase in the company's debt levels and weakening of credit metrics following the closing of the acquisition of Aetna,” said Moody’s in a press release.

Proceeds will be used to fund a tender offer.

The outlook remains negative.

“The negative outlook reflects the uncertainty in the company’s ability to improve metrics especially in light of the company's weaker-than-expected profitability in 2019 and the very high level of new debt on the balance sheet especially if the industry conditions and competitive environment become more unfavorable,” the agency said.

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