Fitch Upgrades PacifiCare Following Acquisition by UnitedHealth Group.
CHICAGO -- Fitch Ratings Fitch Ratings
An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has upgraded the long-term issuer rating and the convertible subordinated debentures subordinated debenture
An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before rating of PacifiCare Health Systems PacifiCare Health Systems (former NYSE: PHS) was a Fortune 500 healthcare company based in Cypress, California. It was acquired by UnitedHealth Group (NYSE: UNH) in late 2005, which continues to market health plans under the PacifiCare name. Inc. (PacifiCare) following the announcement yesterday that 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. has completed its acquisition of PacifiCare. In addition, Fitch has withdrawn the ratings on PacifiCare's senior unsecured notes and bank debt, as these obligations have been retired. A list of Fitch's ratings on Pacificare are listed below.
Fitch placed the ratings of PacifiCare on Rating Watch Positive on July 7, 2005, following the announcement of the acquisition. UNH Unh
The symbol for the element unnilhexium. (senior debt rated 'A'; Outlook Stable by Fitch) is a leading health care services company with total medical membership of 23.5 million.
Today's rating action reflects Fitch's view that the acquisition by UNH has significantly improved PacifiCare's financial position and will enhance its operating profile. PacifiCare's previous ratings were based, in part, on the company's comparatively weaker balance sheet fundamentals and limited business profile.
The following ratings are withdrawn by Fitch:
PacifiCare Health Systems, Inc.:
-- 10.75% senior unsecured notes due 2009;
-- Bank loan.
The following ratings are upgraded from 'BB+' to 'A' by Fitch, with a Stable Outlook:
-- Long-term issuer.
The following rating is upgraded from 'BB' to 'A-' by Fitch, with a Stable Outlook:
-- 3% convertible subordinated debentures 'BB'.
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