Fitch Calls CVS Health Split Credit Neutral for Aetna
Fitch Ratings reported Nov. 9 that CVS Health's planned corporate separation will be credit neutral for Aetna Life Insurance Co. Under the split, one company, temporarily named CVS Health, will house Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health, while a separate CVS Pharmacy entity will hold the 9,000 retail pharmacies, mail pharmacy, MinuteClinic and Health100. Fitch does not expect the split to breach Aetna Life's rating sensitivities, currently 'A'/Negative, or materially increase CVS Health's debt, though it noted that material deterioration in the parent's financial leverage could pressure the rating. Fitch also noted Aetna's 2024 margin pressure stemmed from inadequate Medicare Advantage pricing, higher medical utilization, lower MA star ratings and higher Medicaid acuity.