S&P raises Anthem to A/A-1

Standard & Poor's said it raised its counterparty credit rating on Anthem Inc. to A/A-1 from A-/A-2 and its financial strength and long-term counterparty credit ratings on Anthem's core operating subsidiaries to AA- from A+.

The outlook is stable.

S&P said the ratings reflect its assessment of Anthem’s very strong business risk profile (BRP) and very strong financial risk profile (FRP). The upgrade is based on the agency’s view that Anthem has improved its BRP and FRP during the past two years, and this should result in stronger credit quality.

Anthem executed well and sustained its operating earnings margin and cash-flow generation levels through 2014, a year of heightened sector risks with the implementation of the Affordable Care Act and Medicare reimbursements pressure, S&P said.

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