Health & Fitness
Fri, December 16, 2011
OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has assigned indicative ratings of abbb+a on senior unsecured debt, abbba on subordinated debt and abbb-a on the preferred stock of WellPoint Inc.as (WellPoint) (Indianapolis, IN) (NYSE: WLP) recently filed universal shelf registration. The outlook assigned to these ratings is stable. All existing ratings of WellPoint and its subsidiaries are unchanged.
"A.M. Bestas Ratings & the Treatment of Debt"
A.M. Best expects that any proceeds from the assigned debt would be used for working capital and general corporate purposes, which could include repayment of existing debt as well as business development expenditures.
The rating assignments reflect WellPointas diverse geographic market presence, strong operating results and cash flows as well as solid capitalization. WellPointas debt-to-capital ratio was 29.8% as of September 30, 2011. The interest coverage ratio is strong and is anticipated to be maintained at or above 10 times. Both the debt to capital and interest coverage are well within the guidelines for the ratings.
WellPoint maintains good liquidity through subsidiary dividends, its $2.5 billion commercial paper program, a $2 billion credit agreement and its parent companyas cash balance.
The principal methodology used in determining these ratings is [ Bestas Credit Rating Methodology -- Global Life and Non-Life Insurance Edition ], which provides a comprehensive explanation of A.M. Bestas rating process and highlights the different rating criteria employed. Additional key criteria utilized include: aA.M. Bestas Ratings & the Treatment of Debta and aCommercial Paper Methodology.a Methodologies can be found at [ www.ambest.com/ratings/methodology ].
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit [ www.ambest.com ].
Copyright 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
