S&P Revises American Health Care Providers Rtg to 'R'.
NEW YORK--(BUSINESS WIRE)--Standard & Poor's
Feb. 28, 2000-- Standard & Poor's today revised its financial strength rating on American Health Care Providers Inc. (AHCP) to 'R' from single-'Bpi'.
This follows the announcement by Illinois Insurance Director Nathaniel S. Shapo that he has petitioned the Circuit Court of Cook County for the liquidation of this Illinois-domiciled HMO. Shapo's petition was filed Feb. 15, 2000, but was sequestered by court order until Feb. 25.
AHCP primarily provides coverage in northern and central Illinois to commercial groups, state and federal employees, Illinois Department of Public Aid enrollees, and federal Medicare HMO enrollees. The HMO also wrote some business in Indiana and Arkansas. It was originally incorporated and licensed in 1984 as American HMO.
The company is a subsidiary of First American Group of Companies Inc., an Illinois holding company located in Richton Park, Ill.
On Oct. 10, 1999, in assigning the prior single-'Bpi' rating for AHCP, Standard and Poor's reported that the HMO had weak risk-based capitalization, a declining earnings profile, declining enrollment, and a poor liquidity position.
An insurer rated 'R' is under regulatory supervision owing to its financial condition. During the pendency of the regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others. The rating does not apply to insurers subject only to nonfinancial actions such as market conduct violations.
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|Date:||Feb 28, 2000|
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