S&P cuts Health Net to junk

Standard & Poor's said it lowered its counterparty credit rating on Health Net Inc. to BB+ from BBB- and removed it from CreditWatch. S&P also said it affirmed or lowered its counterparty credit and financial strength ratings on Health Net's various operating subsidiaries and removed them from CreditWatch. The outlook is negative.

"The ratings reflect our belief that Health Net's market profile has been and continues to be stressed by its diminished competitive standing in the Northeast relative to peers," explained S&P credit analyst Joseph Marinucci.

S&P said it now considers only Health Net's California operations as being core to the health plan group because of the unit's significant contribution to consolidated revenue, earnings, cash flow and membership.

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