Fitch Revises Rating Watch on Caremark Rx to Negative.
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.
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|Date:||Feb 13, 2007|
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