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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 11/28/2018
Short-Term Debt P-2 11/28/2018
Outlook Negative 11/28/2018
STANDARD & POOR’S
Debt Type Rating As of
Long-Term Debt BBB 9/30/2018
Short-Term Debt A-2 9/30/2018
Outlook Stable 9/30/2018

Borrowing & Credit Agreements

In millions (as of September 30, 2018) Rate
Commercial paper -
Deferred payments 16
Current Portion of Mortgages 0
Current Portion of Capital Leases 22
Current Portion of LT Notes 2,100
Senior notes due 2020 2,000 3.125%
Senior notes due 2020 1,000 Floating
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 550 4.125%
Senior notes due 2021 1,750 2.125%
Senior notes due 2022 1,500 3.50%
Senior notes due 2022* 399 4.75%
Senior notes due 2022 1,250 2.75%
Senior notes due 2023 6,000 3.70%
Senior notes due 2023 1,250 4.00%
Senior notes due 2024 650 3.375%
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 2038 5,000 4.78%
Senior notes due 2039 446 6.125%
Senior notes due 2041 133 5.75%
Senior notes due 2043 750 5.30%
Senior notes due 2045 3,500 5.125%
Senior notes due 2048 8,000 5.050%
Mortgage notes payable 2
Capital lease obligations 650
Debt premiums 25
Other (Amortizable Debt Fees) (759)
Total debt principal 62,886
Less:
Current portion of long-term debt 2,139
Commercial paper 0.0
Total long-term borrowings $60,747

*Omnicare note

The Company did not have any commercial paper outstanding as of September 30, 2018. In connection with its commercial paper program, the Company maintains a $1.75 billion 364-day unsecured back-up credit facility, which expires on May 16, 2019, a $1.25 billion, five-year unsecured back-up credit facility, which expires on July 1, 2020, a $1.0 billion, five-year unsecured back-up credit facility, which expires on May 18, 2022, and a $2.0 billion, five-year unsecured back-up credit facility, which expires on May 17, 2023. The credit facilities allow for borrowings at various rates that are dependent, in part, on the Company’s public debt ratings and require the Company to pay a weighted average quarterly facility fee of approximately 0.03%, regardless of usage. As of September 30, 2018 and December 31, 2017, there were no borrowings outstanding under the back-up credit facilities.

Sale-leaseback Transactions

In connection with executing operating leases, we provide a guarantee of the lease payments. We also finance a portion of our 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. We do not have any retained or contingent interests in the stores, and we do not provide any guarantees, other than a guarantee of the lease payments, in connection with the transactions. In accordance with GAAP, such operating leases are not reflected in our condensed consolidated balance sheets. See “Note 11 – Commitments and Contingencies” to the condensed consolidated financial statements for a detailed discussion of these guarantees.

Debt Maturity Schedule

q3-2018-data