S&P Announces: Coventry Health Care Inc.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- On Oct. 14, 2004, Standard & Poor's Ratings Services placed its 'BBB-' counterparty credit ratings on Coventry Health Care Coventry Health Care, Inc. (Coventry) (NYSE: CVH) is a managed health care company in the United States. On February 8th of 2007 Coventry agreed to acquire Concentra's Workers Compensation Managed Care Services Businesses. External links
See: New York Stock Exchange :CVH CVH Helicopter Carrier CVH Compound-valve-angle Hemispherical Combustion-chamber (Ford cylinder head design and family of engines) CVH Compound Valve Angle Hemispheral Combustion Chamber CVH continuous venous hemodialysis ) and First Health Group Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :FHCC FHCC Florida Health Care Coalition FHCC Florida Hurricane Crisis Coalition (Tallahassee, Florida) FHCC Fred Hutchinson Cancer Center (Seattle, Washington) FHCC Federal Health Care Center ) on CreditWatch with negative implications following the announcement of a definitive agreement for the acquisition of First Health by Coventry. The transaction, currently valued at about $2.0 billion, is well beyond the scope of Coventry's previous acquisitions. In addition, it is significantly more than Standard & Poor's expected when assessing Coventry's acquisition-based growth strategy. Although Standard & Poor's is comfortable with Coventry's ability to finance the transaction, Standard & Poor's need to further analyze the strategic and operational implications of Coventry's entry into a health care market segment with materially different and changing competitive dynamics compared with those of its existing core business. Standard & Poor's expects to meet with Coventry's management team within 30 days to discuss the transaction and associated integration plan as well as Coventry's future business strategies. The transaction is expected to close in the first quarter of 2005. Upon closing, Standard & Poor's could affirm or lower (most likely by one notch) the ratings and assign either a stable or negative outlook.
Ratings List
TO FROM
Coventry Health Care Inc.
Counterparty credit rating BBB-/Watch Neg/-- BBB-/Stable/--
Senior unsecured debt rating BBB-/Watch Neg BBB-
First Health Group Corp.
Counterparty credit rating BBB-/Watch Neg/-- BBB-/Stable/--
Bank loan rating BBB- BBB-
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion