A.M. Best Assigns Debt Rating to UnitedHealth's New Senior Notes; Affirms Issuer Credit Rating.OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "a" to the $500 million of 4.875% 10-year senior unsecured notes issued by UnitedHealth Group UnitedHealth Group Incorporated NYSE: UNH is a managed health care company. It is the parent of United Healthcare, one of the largest health insurers in the U.S. It was created in 1977, as UnitedHealthCare Corporation (it renamed itself in 1998), but traces its origin to a Inc (NYSE NYSE See: New York Stock Exchange : UNH Unh The symbol for the element unnilhexium. ) (Minnetonka, MN). A.M. Best also affirmed the issuer credit rating of "a" of UnitedHealth. The securities depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d the remaining $500 million of UnitedHealth's $2.0 billion shelf registration previously filed with the Securities & Exchange Commission. UnitedHealth is expected to file a new shelf in the first half of 2005. The outlook for all ratings is stable. A.M. Best expects the proceeds to be used to refinance the outstanding indebtedness under the company's commercial paper program and for general corporate purposes. UnitedHealth's financial leverage is expected to remain under 30% over the medium term. UnitedHealth's earnings capacity and cash flow capabilities are expected to be more than adequate to service the existing debt. UnitedHealth has excellent prospects for the future given its diverse health care operations, strong presence in the large account market and its consistent consolidated revenue and earnings growth. The balance sheet remains strong, built with solid, sustained earnings and a strengthened capital structure. For Best's Debt Ratings, all other 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. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 1,050 health companies and more than 130 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, industry composites, please visit http://www.ambest.com/health/. 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 http://www.ambest.com. |
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