S&P: WellPoint outlook negative

Standard & Poor's said it revised the outlook on WellPoint Inc. and its operating subsidiaries to negative from stable and affirmed its A- counterparty credit rating.

The negative outlook reflects the potential for longer-term weakness in its earnings profile, which has historically been a key strength to the rating, the agency said.

Ratings reflect the company's very strong competitive position in the managed care industry, expanding product innovation and capabilities, excellent brand value, leading local-market positions across numerous states, strong and stable earnings from diversified sources, and strong capitalization, S&P said.

These factors are partially offset by high levels of goodwill and intangibles accumulated through mergers and acquisitions and ongoing competitive and regulatory pressures, the agency noted.

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