A.M. Best Upgrades Ratings of Former Sierra Health Services, Inc. Subsidiaries.OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength ratings to A- (Excellent) from B++ (Good) and the issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) to "a-" from "bbb+" of Sierra Health and Life Insurance Company, Inc. and Health Plan of Nevada, Inc., both former subsidiaries of Sierra Health Services health services Managed care The benefits covered under a health contract , Inc. (Sierra) (Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , NV). Additionally, A.M. Best has upgraded the ICR to "bbb+" from "bb+" of Sierra. Concurrently, A.M. Best has upgraded the debt ratings to "bbb+" from "bb+" on the $20.2 million senior unsecured convertible debentures issued by Sierra, which has been assumed 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 , Incorporated (UnitedHealth) (Minnetonka, MN) (NYSE NYSE See: New York Stock Exchange : UNH Unh The symbol for the element unnilhexium. ). All ratings have been removed from under review with positive implications and assigned a stable outlook. These rating actions reflect the acquisition of Sierra by UnitedHealth on February 25, 2008, allowing Sierra to benefit from a financially stronger parent. UnitedHealth's strong financial profile and creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. should enhance Sierra's financial position, providing more than sufficient support to Sierra and its subsidiaries. In addition, the transaction will provide Sierra with access to UnitedHealth's national network, as well as the ability to offer coverage for expanded specialized health care services such as life, dental and vision. The acquisition will strengthen UnitedHealth's presence in the Southwest, particularly the Las Vegas, Nevada market. Furthermore, the transaction provides UnitedHealth access to Sierra's clinical operation, Southwest Medical Associates, a large multi-specialty group medical practice. UnitedHealth is one of the nation's largest publicly traded health benefits companies serving more than 70 million Americans. It continues to retain customers while growing profits and increasing market share with its diverse product offerings. To date, all of UnitedHealth's operating segments have reported increasing operating margins. A key strength of the organization is its well-diversified operations, which include a significant portion of profitable unregulated businesses. Strong operating cash flows Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. from these activities provide support to UnitedHealth's operations. For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. 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. |
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