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 Removes Ratings Of Aetna Inc. And Its Subsidiaries From Under Review

A.M. Best Co. has removed from under review with negative implications and affirmed the financial strength ratings (FSR) and issuer credit ratings (ICR) of the core insurance subsidiaries of Aetna Inc. (Aetna) (Hartford, CT) [NYSE: AET].

Concurrently, A.M. Best has removed from under review with negative implications and affirmed the ICR and debt ratings of “bbb+” of Aetna. Additionally, A.M. Best has upgraded the FSR to A (Excellent) from A- (Excellent) and the ICRs to “a” from “a-”, as well as the FSR to A- (Excellent) from B++ (Good) and ICRs to “a-” from “bbb+” of some of the former subsidiaries of Coventry Health Care, Inc. (Coventry) (formerly headquartered in Bethesda, MD). At the same time, A.M. Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the ICRs to “a-” from “bbb” and the FSR to A- (Excellent) from B+ (Good) and the ICRs to “a-” from “bbb-” of the remaining former subsidiaries of Coventry.

In addition, A.M. Best has upgraded the ICR to “bbb” from “bbb-” and removed from under review with positive implications this rating of Coventry.

A.M. Best also has upgraded the debt ratings to “bbb” from “bbb-” and removed from under review with positive implications the $400 million 6.3% senior unsecured notes, due 2014; $400 million 5.95% of senior unsecured notes, due 2017; and $600 million 5.95% senior unsecured notes, due 2021 of Coventry. Also, A.M. Best has upgraded the debt rating to “bbb+” from “bbb-” and removed from under review with positive implications the $250 million 6.125% senior unsecured notes, due 2015 of Coventry. The 2015 debt is guaranteed by Aetna for its full and punctual payment. The outlook assigned to the above ratings is stable. (Please see link below for a detailed listing of the companies and ratings.)

The ratings of both Aetna and Coventry were placed under review following the August 2012 announcement that Aetna had entered into an agreement to acquire Coventry. That transaction was completed on May 7, 2013. A.M. Best has since had discussions with management regarding the business strategy around the Coventry acquisition and its integration into Aetna, as well as Aetna’s consolidated 2013 outlook for operating results and key financial metrics.

1 of 3

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 $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.20 -2.10%
TSLA $247.71 -1.50%
YHOO $36.58 -1.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs