Fitch drops WellPoint notes to BBB

Fitch Ratings said it downgraded its ratings on WellPoint, Inc.'s senior unsecured notes to BBB from BBB+ and the insurer financial strength ratings assigned to various WellPoint insurance company subsidiaries to A+' from AA-.

The outlook was revised to stable.

WellPoint’s short-term rating and the rating on its $2.5 billion commercial paper program were affirmed at F2.

Fitch said the actions reflect its view that WellPoint’s run-rate financial leverage metrics are likely to remain elevated relative to expectations for its previous ratings levels. Specifically, Fitch now believes that the company's run-rate ratios of debt-to-EBITDA and debt-to-capital are unlikely to decline to about 2.2 times and 35% by year-end 2015.

Previously the agency had identified an inability to meet these ratings sensitivities as key factors that could lead to downgrades of WellPoint’s ratings.

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