S&P rates Centene notes BB

Standard & Poor's said it assigned its BB counterparty credit rating to Centene Corp.

The outlook is negative.

At the same time, S&P said it assigned its BB senior debt rating to Centene's planned seven-year, $175 million senior notes offering due 2014, which is to be issued via private placement.

The agency said that the proceeds will be used to refinance bank debt outstanding under its five-year revolver and to enhance holding-company liquidity.

The rating on Centene reflects its diverse market presence, good cash-flow profile and good financial flexibility, S&P said, adding that offsetting factors include a narrow market-segment scope, an acquisition-oriented growth strategy and a recently diminished earnings profile.

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