Fitch Rates Aetna's $700MM 8.5% Senior Notes Offering `BBB+'.Business Editors CHICAGO--(BUSINESS WIRE)--June 19, 2001 Fitch fitch: see polecat. has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. a rating of `BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. +' to Aetna Inc.'s issuance of $700 million of 8.5% senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. notes due in August 2041. At the same time, Fitch 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. all of Aetna's existing ratings. The Rating Outlook is Negative. Fitch expects that the proceeds from the debt issuance will be used to pay down outstanding commercial paper. Consequently, there will be no change in Aetna's financial leverage. Fitch's ratings on Aetna reflect the company's well-established competitive position in the health benefits and group insurance business, good balance sheet fundamentals, and challenging regulatory and political environment. The ratings also consider the significant challenges associated with the company's efforts to improve operating performance. Entity/Issue/Type/ Action Rating/Outlook Aetna Inc. --Senior debt rating Affirmed `BBB+'/Negative. --Long-term rating Affirmed `BBB+'/Negative. --Commercial paper Affirmed `F2'. Aetna Life Insurance Company --Insurer financial strength Affirmed `A+'/Negative. |
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