S&P ups Aetna to stable

Standard & Poor's said it revised the outlook on Aetna Inc. and its operating subsidiaries to stable from negative and affirmed the A- counterparty credit rating on Aetna and A+ counterparty credit and financial strength ratings on Aetna's core operating company Aetna Life Insurance Co.

S&P also affirmed the A counterparty credit and financial strength ratings on Aetna's strategically important operating companies.

The rating actions reflect Aetna's improved earnings and the expectation that the improvement will continue, the agency said.

The stable outlook reflects the expectation that S&P will not change the ratings over the next 18-24 months, the agency added.

The ratings consider the negative impact that the competitive market conditions and the economy could have on industry operating margins as well as prolonged economic weakness, which could lead to sufficient budgetary pressure at the national and state levels to curtail future government funding of Medicare and Medicaid, the agency said.

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