CVS Health occupies a critical position in the bond-to-NNN spread analysis: it is a major pharmacy NNN tenant, an active bond issuer, and Moody’s rates it Baa3 (Baa3 is Moody’s lowest investment grade rating). In August 2025 CVS sold 5.450% senior notes due 2035 priced to yield 5.453%, 117 basis points over Treasuries, according to its SEC filings. The 10-year Treasury has since risen from about 4.28% at that pricing to 5.24% on October 1, 2026 (FRED); in a scenario where CVS’s 117 basis point spread is unchanged, those notes would yield roughly 6.4% to maturity, an estimate rather than a quote. Active CVS listings we track ask a median cap rate of 6.50% as of October 19, 2026. The two figures measure different things: a bond’s yield to maturity reflects its price, coupon and repayment at maturity, while an asking cap rate is a property’s net operating income divided by the seller’s asking price, so comparing them is a rough guide to relative pricing, not a measure of extra cash income.
For the full multi-company comparison, see the bond-to-NNN spread analysis. For the complete CVS tenant analysis, see the CVS Credit Rating and NNN Cap Rate page.
CVS Health Credit Profile
| Metric | Details |
|---|---|
| S&P long-term debt rating | BBB |
| Moody’s long-term debt rating | Baa3 |
| Fitch long-term debt rating | BBB |
| Investment Grade Status | Investment Grade |
| Rated entity, outlooks and source | CVS Health Corporation long-term debt. CVS’s Form 10-Q for the quarter ended June 30, 2026 reports these grades as of June 30, 2026, with a Stable outlook from S&P (changed from Negative in May 2026), a Stable outlook from Moody’s and a Negative outlook from Fitch. Ratings database record: S&P Global Ratings BBB, Stable, as of June 30, 2026; Moody’s Baa3, Stable, as of June 30, 2026; Fitch Ratings BBB, Negative, as of June 30, 2026. Ratings checked October 8, 2026. |
| Ticker | NYSE: CVS |
| US Retail Locations | ~9,000 (Dec. 31, 2025) |
| Total Revenue | $402.1 billion (2025, including Aetna and Caremark) |
The Spread: CVS Bonds vs. NNN
| Metric | CVS Corporate Bond | CVS NNN Property |
|---|---|---|
| Yield measure | Yield to maturity: 5.453% at pricing (5.450% notes due 2035, Aug. 2025); roughly 6.4% in a scenario using the October 1, 2026 10-year Treasury yield and an unchanged spread (an estimate, not a quote) | Asking cap rate (net operating income divided by asking price): 6.50% median across active CVS listings we track |
| Difference vs. bond | Baseline | Compare the median asking cap rate with the roughly 6.4% scenario yield; because they are different measures, the gap is a rough pricing comparison, not a measure of extra cash income |
| Investment size | $2,000 minimum face for the 2035 notes, then $1,000 increments (via a broker) | Middle half of asking prices on active CVS listings we track: $2.94M to $6.08M; a given property can be priced outside this range |
| Liquidity | Tradable on business days through a broker; individual issues can trade thinly | Weeks to months to market and close; varies by property |
| Income Taxation | Ordinary income (up to ~45.8% combined in our model) | Partly sheltered by building depreciation when the investor owns the building (land is not depreciable) |
| 1031 Exchange Eligible | No (IRC 1031(a)(1) covers real property only) | Yes, if held for business or investment use and exchanged for like-kind real property (IRC 1031(a)(1)) |
| Depreciation Deduction | None | Building basis generally recovered over 39 years straight line (IRC 168; IRS Publication 946); a cost segregation study may reclassify eligible components; land, including land under a ground lease, is not depreciable |
| Building Size | N/A | Median about 12,136 SF across active CVS listings we track that state a building size |
| Typical NNN Lease | N/A (debt instrument) | CVS reports initial lease terms typically of 15 to 25 years (Form 10-K for 2025); rent increases vary, so confirm them, the tenant entity and any CVS Health guaranty in the lease |
Bond yield at pricing for CVS’s 5.450% senior notes due 2035 (August 2025) is from CVS’s SEC filings. The current-yield estimate adds the rise in the 10-year Treasury yield from about 4.28% at pricing to 5.24% on October 1, 2026 (FRED) and assumes CVS’s 117 basis point spread is unchanged; it is an estimate, not a quote. NNN cap rates, prices and sizes are asking-listing figures across active CVS listings tracked by InvestmentGrade.com, as of October 19, 2026; asking cap rates are not closed-sale cap rates. A bond’s yield to maturity and a property’s cap rate are different measures. The ~45.8% combined rate assumes the 37% top federal rate (IRC §1(j)), the 3.8% net investment income tax (IRC §1411), and about 5% state tax. This is not investment advice.
Why CVS Requires Special Attention
CVS is rated BBB (Stable) by S&P, Baa3 (Stable) by Moody’s, and BBB (Negative) by Fitch. If Moody’s rates CVS at Baa3, its lowest investment grade rating, a one-notch Moody’s downgrade would make CVS split-rated. That would not by itself push CVS out of investment grade bond indexes that use the middle of three ratings, but mandates and indexes apply different rules, and some investors with stricter limits could be required to sell. For NNN investors, a downgrade could also widen CVS cap rates, especially on shorter remaining terms.
Bond and NNN markets both treat CVS as investment grade today. Where they differ is how much premium each demands for the uncertainty. With the 10-year Treasury yield up from about 4.28% when CVS priced its 2035 notes in August 2025 to 5.24% on October 1, 2026, a scenario that holds CVS’s 117 basis point spread unchanged puts those notes near a 6.4% yield to maturity. Compare that with the 6.50% median asking cap rate on active CVS listings we track, keeping in mind that one is a hypothetical bond yield to maturity and the other is net operating income divided by an asking price, so the difference is not an observed premium in cash income. Lease term, residual land value, 1031 eligibility, and depreciation when the investor owns the building also bear on the choice.
The CVS Paradox: $402 Billion Revenue, Baa3 at Moody’s
CVS Health reported $402.1 billion of total revenue in 2025 across CVS Pharmacy retail stores, Caremark pharmacy benefit management (which CVS describes as a leading pharmacy benefits manager, with approximately 87 million plan members), Aetna health insurance, and the Oak Street Health primary care platform. CVS completed the Aetna acquisition on November 28, 2018 in a transaction that valued Aetna at approximately $70 billion, and financed the cash portion partly by issuing approximately $45.0 billion of new debt (Form 10-K for 2018).
For NNN investors, the lease and the guarantor matter as well as the corporate rating. A CVS pharmacy in a strong suburban corridor, with 10 or more years remaining and a CVS Health guaranty, is a different risk profile than the rating alone might suggest. CVS generated $10.6 billion of operating cash flow in 2025, according to its 10-K. Confirm the guarantor on each lease, because the corporate rating applies only where CVS Health stands behind the rent.
CVS vs. Walgreens: The Pharmacy NNN Divergence
The divergence between CVS and Walgreens is a clear credit story in net lease. CVS maintains investment grade ratings (BBB/Baa3) while Walgreens was taken private by affiliates of investment funds managed by Sycamore Partners in August 2025 (Form 8-K, August 28, 2025). In the active listings we track, CVS asks a median cap rate of 6.50% and Walgreens 7.63%. Remaining lease term varies across these listings, and some do not state it, so compare properties with similar stated terms rather than relying on the overall medians. For NNN investors evaluating national pharmacy real estate, CVS carries investment grade ratings and Walgreens has no investment grade rating in our database. See our CVS vs Walgreens comparison.
CVS’s 5.450% notes due 2035 priced to yield 5.453% in August 2025. With the 10-year Treasury up to 5.24% on October 1, 2026, a scenario that holds CVS’s spread unchanged puts those notes near a 6.4% yield to maturity; that is an estimate, not a quote. The median asking cap rate on active CVS listings we track is 6.50%. A bond yield to maturity and an asking cap rate (net operating income divided by asking price) are different measures, so the difference between them is a rough pricing comparison, not an observed premium in cash income. After tax, an investor who owns the building can shelter part of the income with building depreciation; an investor who owns only the land under a ground lease cannot.
CVS is rated BBB (Stable) by S&P, Baa3 (Stable) by Moody’s, and BBB (Negative) by Fitch. If Moody’s rates it at Baa3, its lowest investment grade rating, a downgrade there would make CVS split-rated. NNN investors should monitor rating actions and confirm the guarantor on each lease. A downgrade could widen CVS cap rates, particularly for shorter remaining terms, though the size of any move is uncertain.
Ratings (S&P/Moody’s): CVS BBB/Baa3; Dollar General BBB/Baa3. In the active listings we track, CVS asks a median cap rate of 6.50% and Dollar General 7.00%. Any gap may reflect differences in store size, rent level, location type, and lease structure as well as credit.
Considering CVS NNN?
We source CVS NNN properties nationally. On the majority of transactions, there is no separate fee to you as the buyer.
Find It: CVS NNN with long remaining lease terms in strong suburban corridors.
Fund It: BBB/Baa3 credit. Loan terms depend on the lease and guarantor.
Exit It: CVS is a widely known NNN tenant; resale pricing depends on remaining lease term and the guarantor.
Exchange It: The middle half of asking prices on active CVS listings we track runs from $2.94M to $6.08M. Whether a CVS property fits your exchange depends on your relinquished sale, equity, any debt to replace and the property’s terms.
Benchmark CVS Separately From Generic Pharmacy NNN
CVS is rated BBB/Baa3 (S&P/Moody’s), and CVS pricing can differ from other pharmacy tenants. Compare any CVS asking cap rate against current 2026 NNN cap rates by tenant credit quality and the 1031 tenant-selection framework, then review the CVS credit profile, store-level real estate, lease term, and Walgreens divergence before treating the spread as durable.
Next reads: CVS credit rating and NNN cap rate | Walgreens NNN owner 2026 update | Dollar General bonds vs NNN | investment grade tenant ratings
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