This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A.M. Best Assigns Ratings To Aetna Inc.’s New Senior Notes

A.M. Best Co. has assigned debt ratings of “bbb+” to $2 billion of senior unsecured notes recently issued in three tranches by Aetna Inc. (Aetna) (Hartford, CT) [NYSE: AET]. The ratings have been placed under review with negative implications, consistent with the under review status of the existing ratings of Aetna and its insurance subsidiaries. (See A.M. Best’s press release dated August 21, 2012 for further information.)

The proceeds from the securities will be used to finance a portion of the purchase price of the acquisition of Coventry Health Care, Inc. (Coventry). Although Aetna’s pro forma financial leverage—as well as its goodwill and intangibles to equity ratio—will be somewhat higher than similarly-rated peers, A.M. Best views favorably the low cost of capital and the laddering of maturities within Aetna’s capital structure. Additionally, the issuance is consistent with A.M. Best’s expectations with respect to Aetna’s capital structure incorporating the financing for the previously announced $7.3 billion (approximate) acquisition of Coventry.

The Coventry acquisition is expected to close mid-2013, subject to state and federal regulatory approvals and other customary closing conditions. Aetna’s ratings are anticipated to remain under review pending the completion of the transaction and A.M. Best’s continuing discussions with management. However, A.M. Best will continue to monitor Aetna’s operating performance, risk-adjusted capitalization at the operating companies and its capital structure to ensure financial and operating metrics remain within A.M. Best’s expectations.

The following debt ratings have been assigned:

Aetna Inc.—

-- “bbb+” on $500 million 1.50% senior unsecured notes, due 2017

-- “bbb+” on $1 billion 2.75% senior unsecured notes, due 2022

-- “bbb+” on $500 million 4.125% senior unsecured notes, due 2042

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit .

Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs