Moody's may lift Coventry

Moody's Investors Service said it placed Coventry Health Care, Inc.'s senior unsecured debt rating of Ba1, senior unsecured credit facility of Ba1 and corporate family rating of Ba1 under review for possible upgrade following the company's first-quarter 2011 earnings release and improved full-year 2011 earnings guidance.

The agency said that Coventry's financial profile continues to improve with earnings margins increasing in 2010 over 2009 and management's commitment to maintain a consolidated 200% risk based capital ratio at company action level.

Financial flexibility continues to strengthen with access to a sizeable unregulated cash flow stream from the company's non-insurance subsidiaries, Moody's added.

The review will focus on Coventry's ability to sustain earnings margins and membership, the agency said.

© 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.