A.M. Best Assigns Rating to the Senior Unsecured Notes Issued by UnitedHealth Group, Incorporated.

OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bbb+" to $3 billion of senior unsecured notes issued by UnitedHealth Group, Incorporated (UnitedHealth) (Minnetonka, MN) (NYSE: UNH) in four tranches. A.M. Best also has assigned a debt rating of "bbb+" to the senior debt securities under the new shelf registration. The outlook for all ratings is stable.

Additionally, A.M. Best has withdrawn the issuer credit rating of "bbb+" on PacifiCare Health Systems, LLC (Delaware) as the debt on this entity was retired in late 2007.

The proceeds from the offering will be used for general corporate purposes and may be used to redeem or repurchase outstanding securities to refinance debt and to finance acquisitions.

UnitedHealth's operating segments have reported increasing operating margins. A key strength of the organization derives from its well-diversified operations, which include a significant portion of profitable unregulated businesses. Strong operating cash flows from these activities provide support to UnitedHealth's operations.

UnitedHealth's financial leverage has steadily increased to over 35% from under 30% a year earlier. UnitedHealth's earnings before interest and taxes (EBIT) interest coverage remains strong at approximately 14 times; however, it has been steadily declining from a high of 30 times a few years ago due to higher debt levels. Furthermore, while the EBIT interest coverage is anticipated to continue to decline with the additional debt service, it is expected to be maintained at over 10 times.

The following debt ratings have been assigned:

UnitedHealth Group, Incorporated--

-- "bbb+" on $250 million floating rate senior unsecured notes, due 2011

-- "bbb+" on $550 million 4.875% of senior unsecured notes, due 2013

-- "bbb+" on $1.1 billion 6.0% of senior unsecured notes, due 2018

-- "bbb+" on $1.1 billion 6.875% of senior unsecured notes, due 2038

The following indicative rating on securities available under shelf registration has been assigned:

UnitedHealth Group, Incorporated--

-- "bbb+" on senior unsecured debt 

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.