Moody's affirms WellPoint

Moody's Investors Service said it has affirmed the ratings of WellPoint, Inc. (senior debt at Baa1) and its operating subsidiaries following's announcement of WellPoint's agreement to sell its NextRx subsidiaries, which provide pharmacy benefit management services, to Express Scripts for $4.7 billion in cash and equity in Express Scripts.

The outlook on WellPoint and its subsidiaries remains negative.

The transaction is expected to close during the second half of 2009 and is subject to regulatory requirements, the agency said.

Moody's commented that overall, the transaction has the potential to place positive pressure on WellPoint's ratings; however, the ultimate impact will depend on the use of proceeds and the amount of savings and operational efficiencies WellPoint can achieve from its new multi-year service agreement with Express Scripts.

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