Fitch rates WellPoint notes A-

Fitch Ratings said it assigned an A- rating to WellPoint, Inc.'s $700 million issuance of senior unsecured notes due 2020 and $300 million issuance of senior unsecured notes due 2040.

Fitch said it expects proceeds to be used to fund a January 2011 $700 million debt maturity, an April 2011 term loan maturity of about $370 million and for general corporate purposes.

The ratings are supported by the company's fairly stable operating performance, strong cash flow, good combined capitalization of its operating subsidiaries and strong competitive position, which is bolstered by the company's right to use the Blue Cross and Blue Shield brands, Fitch said.

The ratings also reflect strong competition in the commercial health sector, ongoing risks associated with the implementation of health reform legislation and continued concerns related to unsustainable medical cost trends, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.