Moody's: WellPoint outlook negative

Moody's Investors Service said it affirmed WellPoint, Inc.'s Baa1 senior unsecured debt rating but changed the outlook to negative from stable.

The outlook change follows the company's fourth-quarter earnings release and recognizes a combination of factors related to current economic conditions and some specific concerns regarding WellPoint's business and financial profile, the agency said.

Specific to WellPoint, Moody's noted that the company's pre-tax net realized investment losses of $1.2 billion during 2008 resulted in lower earnings and regulatory capital adequacy. The agency also said that current economic conditions have led to membership losses throughout the health insurance sector, driven by a combination of employers dropping coverage for their employees and from employee layoffs.

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