Moody's affirms WellPoint

Moody's Investors Service said it affirmed the ratings of Anthem Inc. (senior debt at Baa1) and Anthem Insurance Cos. Inc. based on the company's continued strong fundamental performance, the progress it has made in preparation for the planned merger with WellPoint Health Networks Inc., and the proposed financing structure of the acquisition.

The rating agency also affirmed the debt ratings of WellPoint (senior debt at Baa1).

The outlook remains stable.

Underlying Anthem's ratings, Moody's cited the company's diversified health benefits operations and strong market shares in several states. This strong market presence is attributable to the company's ownership of Blue Cross and Blue Shield licenses in nine states. The rating also reflects the company's disciplined financial management, sound strategic focus, and proven prowess in acquiring and integrating health insurance operations.

WellPoint also benefits from the strong branding associated with ownership of the Blue Cross license in California, as well as the Blue Cross and Blue Shield licenses in Georgia, Missouri, and Wisconsin.

Moody's noted that while most of WellPoint's membership remains California based, the company has successfully grown in its other markets and presents a more geographically diverse business. Moody's also views the company's strong specialty product offerings favorably as it provides additional revenue opportunities and a more diverse earnings profile.

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