S&P places Amerigroup on positive watch

Standard & Poor's said it placed its BB+ counterparty credit rating on Amerigroup Corp. on CreditWatch with positive implications following WellPoint Inc.'s announcement that it has entered into an agreement to acquire Amerigroup.

"The CreditWatch placement reflects Amerigroup's anticipated acquisition by a higher-rated entity (WellPoint), which likely will result in an upgrade by up to four notches," said S&P credit analyst Hema Singh in a news release.

"We will continue to monitor Amerigroup's operating performance and financial condition, as well as discuss its capital structure and role within the acquiring firm with WellPoint's management," Singh 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.