|[September 05, 2013]
Fitch Releases U.S. Health Insurance Credit Metrics Update Report
CHICAGO --(Business Wire)--
Fitch Ratings has published a new report detailing key credit metrics of
nine publicly-traded U.S. health insurance and managed care companies.
The report is meant to be used as a desktop guide, providing financial
data and rankings, key credit strengths and concerns, and current
ratings levels and sensitivities.
The first section of the report includes company rankings based on
revenue growth, EBITDA margin and returns on capital. Capitalization
measures such as debt-to-EBITDA and financial leverage ratios are also
included as are interest coverage ratios and share repurchase metrics
for each company and the overall group.
The second section of the report provides a more detailed discussion of
the nine individual companies including credit strengths and concerns,
ratings and rating triggers (where applicable), and detailed information
about each company's capital structure.
Fitch views the aggregate credit metrics of these nine health insurance
and managed care companies as deteriorating modestly over the last 12
months, primarily reflecting higher leverage ratios from
acquisition-related debt. The agency expects leverage metrics to
moderate over the next 12-18 months as capital is retained and debt
matures. Operating results generally remain supportive of current
ratings and through the first half 2013 included strong acquisition
related revenue growth. Despite this growth, EBITDA-based margins
declined reflecting prmium rate pressure, growth in lower margin
Medicaid and Medicare business and an uptick in utilization.
The report 'U.S. Health Insurance: Credit Metrics Update' is available
on the Fitch web site at 'www.fitchratings.com.'
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: U.S. Health Insurance: Modest
Credit Metrics Decline
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
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