Moody’s changes CVS outlook to stable

Moody’s Investors Service said it changed the outlook for CVS Health Corp. to stable from negative and affirmed the company’s senior unsecured rating at Baa2.

The change in outlook reflects governance considerations, particularly CVS’ financial strategies, which continue to support significant debt reduction from its excess cash flow and an ongoing commitment to its internal leverage target of low 3x, Moody’s said.

Since the closing of the Aetna transaction, CVS has repaid $13.8 billion of debt, and Moody’s said it expects the company to repay more than $5 billion of debt over the next 12 months.

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