NEW YORK (AP) — Moody's Investor's Service maintained a positive view of the largest U.S. pharmacy benefits managers Tuesday, saying it has the highest opinion of CVS Caremark Corp.

Moody's holds investment-grade "Baa" ratings of the credit of CVS Caremark, Medco Health Solutions Inc., and Express Scripts Inc. It said all three companies will benefit from introductions of new generic drugs and from concerns about rising health care costs, but lower membership in commercial health plans could hurt all three companies.

The firm said it has the highest opinion of CVS Caremark because its retail business provides diversity. CVS Caremark, based in Woonsocket, R.I., is the second-largest drugstore chain in the U.S., with about 7,100 stores. The combination of a pharmacy benefit manager and a drugstore chain gives the company a unique business model, allowing it to save money by buying drugs in large quantities. It can also encourage pharmacy benefit members to go to CVS stores.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.