Fitch: Anthem outlook negative

Fitch Ratings said it removed the ratings of Anthem Inc. from Rating Watch negative, assigned a negative outlook and affirmed the company’s BBB+ long-term issuer default rating and the BBB rating assigned to its senior notes.

The rating actions follow the completion of a periodic review of Anthem’s ratings and the company's May 12 termination of its merger agreement with Cigna Corp.

The agency said the ratings reflect the company's very strong business profile, good capitalization and leverage characteristics and strong financial performance and debt service capabilities.

The negative outlook reflects uncertainty around Anthem’s run-rate financial leverage metrics given the potential resumption of the company's share repurchase efforts as well as possible adverse effects on leverage derived from the terminated merger agreement with Cigna and from Anthem’s historic acquisition orientation, Fitch said.

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