Actionable news
0
All posts from Actionable news
Actionable news in UNH: UNITEDHEALTH GROUP INCORPORATED,

UnitedHealth Faces Moody's Rating Action, Outlook Upgraded

UnitedHealth Group Inc. UNH has witnessed a rating action from Moody's Investors Service. Moody's affirmed the senior debt rating of the UnitedHealthcare Insurance Company (UHIC) unit at ‘A3’ and the insurance financial strength (IFS) rating at 'A1.’

Moody’s also upgraded the outlook on UnitedHealth and UHIC to stable from negative.

Looking back, Moody’s had put the company’s rating on negative watch following its acquisition of pharmacy benefit manager Catamaran in 2015. This raised the company’s leverage ratio as the deal was financed by debt.

The rating action takes into account the company’s leadership position in the industry, its diversified business product profile, its profitable health benefits and health service segments. Consistent cash generation by UnitedHealth has enabled it to lower its debt levels.

An offsetting factor is the company’s use of debt for acquisitions, which makes it more leveraged. Also, high goodwill and lower risk based capital ratio (as...


More