S&P rates CVS Caremark notes BBB+

Standard & Poor’s said it assigned its BBB+ issue-level rating to CVS Caremark Corp.’s proposed senior unsecured notes offering of up to $1.5 billion.

The company will issue the notes under shelf registration in two tranches due 2019 and 2024. It intends to use the proceeds for general corporate purposes, which may include the purchase of its 6.25% senior notes due 2027, 6.125% senior notes due 2039 and its 5.75% senior notes due in 2041 and 2017.

CVS commenced a tender offer for these securities on Aug. 7.

S&P said it believes the transaction will allow the company to save modestly on interest expense.

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