Moody's lifts Anthem view to stable

Moody's Investors Service said it affirmed the Baa2 senior debt rating of Anthem, Inc. following the termination of its merger with Cigna on May 12.

The insurance financial strength ratings of Anthem's operating subsidiaries, all of which are rated A2, also were affirmed.

The outlook also was changed to stable from negative.

Moody's noted the company's strong business profile, as well.

The agency said it is the nation's second largest health insurer based on medical membership with leading market shares in most of the states in which it operates and strong geographic and product diversity with operations in 14 states and sizable presences in both the commercial and government sectors.

Its financial profile, capital adequacy, profitability and leverage has remained consistently solid and within expectations, Moody's said.

The company does have debt maturities of about $3.1 billion over the next three years, the agency added.

Anthem's credit challenges include managing the uncertainty related to new health care reform, including the potential loss of federal cost-sharing subsidies and maintaining appropriate leverage, Moody's said.

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