Fitch reviews Anthem for downgrade

Fitch Ratings said it placed Anthem Inc.'s ratings on Rating Watch Negative following the July 24 announcement that it entered into a definitive agreement to acquire Cigna Corp. for cash and stock valued at about $49.1 billion.

The acquisition is expected to close in the second half 2016.

Fitch said the action reflects the negative effect the acquisition will have on Anthem’s financial leverage metrics and potential operational and earnings disruptions that could arise as Anthem integrates Cigna's from an operational and management perspective.

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