Moody's rates WellCare notes B1

Moody's Investors Service said it assigned a B1 subordinated debt rating to WellCare Health Plans, Inc.'s $112.5 million planned bond issuance.

The bonds are being issued as part of an agreement to settle a consolidated class action lawsuit against the company, according to Moody's.

The outlook is stable.

Moody's said ratings are supported by the organization's financial profile, characterized by adequate and consistent operating earnings, and strong cash flow including a stream of unregulated cash flows from management fees.

Ratings also reflect a somewhat weaker business profile, largely the result of the nature of the company's business, which is exclusively focused on the Medicare and Medicaid segments with over 70% of its medical membership concentrated in Florida and Georgia, the agency noted.

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