Moody's upgrades Bravo Health

Moody's Investors Service said it upgraded Bravo Health, Inc.'s corporate family rating and senior secured debt rating to B1 from B2.

The outlook is stable.

The agency said the upgrade was driven by a combination of improved financial metrics highlighted by improving operating margins, a medical loss ratio consistently below 82%, solid membership growth and an improvement in the company's capital position with a consolidated risk-based capital ratio of more than 200% of company action level.

Moody's noted, however, that these credit strengths are mitigated by the company's small membership base and its concentration in the Medicare Advantage segment, which subjects the company to greater earnings volatility compared to larger, better diversified health-care companies.

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