A.M. Best Affirms Financial Strength and Debt Ratings of WellPoint Health Networks Inc.; Revises Debt Outlook to Stable.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the various financial strength ratings of WellPoint Health Networks Inc.'s (WellPoint) (NYSE NYSE See: New York Stock Exchange : WLP WLP WebLogic Portal (Bea Systems) WLP Wafer Level Packaging WLP Women's Learning Partnership (Bethesda, MD) WLP Workplace Learning & Performance WLP World Library Partnership, Inc. ) (Thousands Oaks, CA) life/health insurance and health maintenance organization (HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, ) subsidiaries. Concurrently, A.M. Best has affirmed the various debt ratings of WellPoint. The outlook for all the financial strength ratings is stable, except for the Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee subsidiaries, which have a rating outlook of positive. The rating outlook for all debt ratings has been revised to stable from negative. (See link below for a detailed listing.) These rating actions follow A.M. Best's analysis of the proposed merger between Anthem anthem [ultimately from antiphon], short nonliturgical choral composition used in Protestant services, usually accompanied and having an English text. The term is used in a broader sense for "national anthems" and for the Latin motets still used occasionally in Inc. (Anthem) (NYSE: ATH) (Indianapolis, IN) and WellPoint. The analysis included the proposed financing required to complete the transaction, current and future expected earnings and the potential for $250 million in synergies created in the new organization. A.M. Best recognizes that WellPoint is a market leader in the majority of its operating regions with a strong historical operating performance and a track record of successful integration. In this regard, WellPoint's ratings are not expected to change should the merger with Anthem remain incomplete. While the debt to capital ratio is expected to remain well within industry norms of 20%-25%, and projected debt service coverage will remain very strong, the large increase of intangibles lessens the quality of the new holding company's capital structure. For a complete list of WellPoint Health Networks Inc.'s financial and debt ratings visit www.ambest.com/press/082604wellpoint.pdf. For current Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , independent data and analysis on more than 1,050 health companies and more than 130 HMO industry composites, please visit http://www.ambest.com/health/. For a list of A.M. Best's debt ratings, please visit http://www.ambest.com/debtratings/. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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