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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 03/31/2020
Short-Term Debt P-2 03/31/2020
ALIC Financial Strength A2 03/31/2020
Outlook Negative 03/31/2020
STANDARD & POOR’S
Debt Type Rating As of
Long-Term Debt BBB 03/31/2020
Short-Term Debt A-2 03/31/2020
ALIC Financial Strength A- 03/31/2020
Outlook Stable 03/31/2020

Borrowing & Credit Agreements

In millions (as of March 31, 2020) Rate
Commercial paper 255 3.72%
Deferred payments -
Current Portion of Capital Leases 35.8
Senior notes due 2020 2,750 2.80%
Senior notes due 2021 2,038 3.35%
Senior notes due 2021 1,000 Floating
Senior notes due 2021 1,750 2.125%
Senior notes due 2021 222 4.125%
Senior notes due 2021 203 4.125%
Senior notes due 2021 187 5.45%
Senior notes due 2022 1,500 3.50%
Senior notes due 2022 1,000 2.75%
Senior notes due 2022 1,250 2.75%
Senior notes due 2022* 399 4.75%
Senior notes due 2023 6,000 3.70%
Senior notes due 2023 1,300 2.80%
Senior notes due 2023 1,250 4.00%
Senior notes due 2024 650 3.375%
Senior notes due 2024 1,000 2.625%
Senior notes due 2024 750 3.50%
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 2026 750 3.000%
Senior notes due 2027 750 3.625%
Senior notes due 2027 372 6.25%
Senior notes due 2028 9,000 4.30%
Senior notes due 2029 1,750 3.25%
Senior notes due 2030 1,500 3.75%
Senior notes due 2035 652 4.875%
Senior notes due 2036 771 6.625%
Senior notes due 2037 533 6.75%
Senior notes due 2038 5,000 4.78%
Senior notes due 2039 447 6.125%
Senior notes due 2040 1,000 4.125%
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%
Senior notes due 2050 750 4.250%
Capital lease obligations 883
Other Debt 279
Issuance Costs & Premiums/Discounts (794)
Total debt 71,818



Less:
Current portion of long-term debt 5,828
Commercial paper 255
Total long-term borrowings $63,735

*Omnicare note

Sale-leaseback Transactions

The Company finances a portion of its store development program through sale-leaseback transactions. The properties are generally sold at net book value, which approximates fair value, and the resulting leases generally qualify and are accounted for as operating leases. The Company does not have any retained or contingent interests in the stores and does not provide any guarantees, other than a guarantee of lease payments, in connection with the sale-leaseback transactions.

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 for the initial lease term and any extension thereof pursuant to a renewal option provided for in the lease prior to the time of the disposition. When the subsidiaries were disposed of and accounted for a discontinued operations, 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 fail to make the required payments under a store lease, the Company could be required to satisfy these obligations, and any significant adverse impact of COVID-19 on such purchasers and/or former subsidiaries increases the risk that the Company will be required to satisfy those obligations.

As of March 31, 2020, the Company guaranteed 77 such store leases (excluding the lease guarantees related to Linens ‘n Things, which have been recorded as a liability on the unaudited consolidated balance sheets), with the maximum remaining lease term extending through 2030.

Debt Maturity Schedule

q4-2019-data