S&P affirms Aetna

Standard & Poor's said it affirmed its A- counterparty credit rating on Aetna Inc. and the A+ counterparty credit and financial strength ratings assigned to its core operating company, Aetna Life Insurance Co.

The outlook is stable.

The agency said the ratings are 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 program, strong capital adequacy at the operating companies, moderately conservative investment portfolio and strong financial flexibility.

Slightly offsetting these strengths are the expected operating margin compression across the health insurance industry in 2008, a very competitive pricing environment at the national and local market level, increased business exposure to the unpredictability of government funding in Medicare and Medicaid and higher projected debt leverage in 2008, S&P said.

The holding company, Aetna, is rated two notches lower than Aetna Life to represent the holding company's dependence on dividends from Aetna Life for debt servicing and the regulatory restrictions that prevent the free flow of funds within the organization, S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.