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Fitch Revises Rating Watch on Caremark Rx to Negative.

CHICAGO -- Fitch Ratings has revised its Rating Watch on Caremark Rx, Inc. (CMX) to Negative from Evolving. Fitch has an Issuer Default Rating (IDR) of 'BBB' for CMX.

The action is the result of CVS's revised offer for CMX, which will result in about $1.72 billion of more debt for the combined company. As a result, Fitch does not anticipate an upgrade possibility in its ratings following the close of the transaction, given the increased level of debt associated with it, which would be more reflective of a Negative Rating Watch. Fitch rates CVS with an IDR of 'BBB', with a Stable Outlook.

In addition, Express Scripts has made a hostile bid to acquire CMX. Express Scripts' offer involves a significant increase of debt (approximately $13 billion), which, if completed would likely result in CMX's rating being downgraded.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
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Publication:Business Wire
Date:Feb 13, 2007
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