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Fixed Income Information

CVS Health Corporation typically funds its operations through internally generated cash flow and commercial paper as well as through borrowings under various committed and uncommitted lines of credit. Our strong balance sheet has allowed us at times to enter the capital markets to fund acquisitions. This section provides details in regard to our financing.

Credit Ratings

MOODY’S
Debt Type Rating As of
Long-Term Debt Baa2 03/31/2019
Short-Term Debt P-2 03/31/2019
Outlook Negative 03/31/2019
STANDARD & POOR’S
Debt Type Rating As of
Long-Term Debt BBB 03/31/2019
Short-Term Debt A-2 03/31/2019
Outlook Stable 03/31/2019

Borrowing & Credit Agreements

In millions (as of September 30, 2018) Rate
Commercial paper 3,005
Deferred payments 17
Current Portion of Mortgages 0
Current Portion of Capital Leases 25
Current Portion of LT Notes 3,850
Senior notes due 2020 2,750 2.80%
Senior notes due 2021 3,000 3.35%
Senior notes due 2021 1,000 Floating
Senior notes due 2021 500 4.125%
Senior notes due 2021 550 4.125%
Senior notes due 2021 1,750 2.125%
Senior notes due 2021 600 5.45%
3-Year tranche loan due 2021 2,500 Tranche
Senior notes due 2022 1,500 3.50%
Senior notes due 2022* 399 4.75%
Senior notes due 2022 1,000 2.75%
Senior notes due 2022 1,250 2.75%
Senior notes due 2023 6,000 3.70%
Senior notes due 2023 1,250 2.75%
Senior notes due 2023 1,300 2.80%
Senior notes due 2024 650 3.375%
Senior notes due 2024 750 3.35%
Senior notes due 2024* 299 5.00%
Senior notes due 2025 5,000 4.10%
Senior notes due 2025 2,828 3.875%
Senior notes due 2026 1,750 2.875%
Senior notes due 2027 372 6.25%
Senior notes due 2028 9,000 4.30%
Senior notes due 2035 652 4.875%
Senior notes due 2036 771 6.625%
Senior notes due 2037 534 6.75%
Senior notes due 2038 5,000 4.78%
Senior notes due 2039 447 6.125%
Senior notes due 2041 133 5.75%
Senior notes due 2042 500 4.50%
Senior notes due 2042 500 4.125%
Senior notes due 2043 750 5.30%
Senior notes due 2044 375 4.75%
Senior notes due 2045 3,500 5.125%
Senior notes due 2047 1,000 3.875%
Senior notes due 2048 8,000 5.050%
Mortgage notes payable 1
Capital lease obligations 535
Issuance Costs & Premiums/Discounts (808)
Total debt principal 74,786



Less:
Current portion of long-term debt 3,893
Commercial paper 3,005
Total long-term borrowings $67,888

*Omnicare note

Sale-leaseback Transactions

In connection with executing operating leases, the Company provides a guarantee of the lease payments. The Company also finances a portion of its new store development through sale-leaseback transactions, which involve selling stores to unrelated parties and then leasing the stores back under leases that generally qualify and are accounted for as operating leases. The Company does not have any retained or contingent interests in the sold stores, and does not provide any guarantees, other than a guarantee of the lease payments, in connection with the transactions. In accordance with generally accepted accounting principles, the Company's operating leases are not reflected on the consolidated balance sheets.

Between 1995 and 1997, the Company sold or spun off a number of subsidiaries, including Bob’s Stores and Linens ‘n Things (each of which subsequently filed for bankruptcy), and Marshalls. In many cases, when a former subsidiary leased a store, the Company provided a guarantee of the former subsidiary's lease obligations. When the subsidiaries were disposed of, the Company’s guarantees remained in place, although each initial purchaser agreed to indemnify the Company for any lease obligations the Company was required to satisfy. If any of the purchasers or any of the former subsidiaries were to become insolvent and failed to make the required payments under a store lease, the Company could be required to satisfy these obligations.

As of March 31, 2019, the Company guaranteed approximately 80 such store leases (excluding the lease guarantees related to Linens ‘n Things), with the maximum remaining lease term extending through 2029. Management believes the ultimate disposition of any of the remaining lease guarantees will not have a material adverse effect on the Company’s consolidated financial condition or future cash flows.

Debt Maturity Schedule

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