S&P affirms Aetna program

Standard & Poor's said it affirmed its A-2 short-term rating on Aetna Inc.'s 4(2) commercial paper program, which was increased to $1.5 billion from $1.0 billion.

The commercial paper program is backed by the company's $1.5 billion revolving credit agreement, which permits up to $200 million to be used for letters of credit, the agency said, noting that this credit facility expires in March 2013.

Aetna has good near-term liquidity, S&P said, adding that access to the capital markets is good as demonstrated by the company's $700 million debt offering in November 2007, at which time it paid down $700 million of commercial paper.

According to the agency, the rating is based on Aetna's very strong and consistent earnings profile, strong competitive position in the health care benefits market, solid revenue and membership growth, strong enterprise risk management, strong capital adequacy at the operating companies, moderately conservative investment portfolio and strong financial flexibility.

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