The following is from Fitch Ratings on
Fitch Ratings has affirmed
The Rating Outlook is revised to Positive from Stable. A complete list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The revised Rating Outlook on
Profitability of individual business sourced on exchanges established through the Affordable Care Act (ACA) remains a concern. Further, Fitch is monitoring the impact of
The company's ratio of debt to EBITDA was 1.4x and operating EBITDA to interest expense was 12.4x during the first half of 2014. Both ratios were better than Fitch's median guidelines for the current rating category. Fitch does not expect
Key ratings triggers that could lead to an upgrade for
--Continuation of current operating results, specifically, EBITDA margin exceeding 3 percent or greater and return on average capital in the high single digits;
--Maintenance of consolidated
--Flat-to-favorable reserve development.
Key ratings triggers that could lead to downgrade for
--Poor earnings results measured by EBITDA margin below 1 percent;
--A significant decline in consolidated RBC below 175 percent of the CAL or debt-to-EBITDA greater than 3.0x.
Fitch has affirmed the following ratings with a Positive Rating Outlook:
--Long-term IDR at 'BB+';
--6.375 percent senior notes due
Health Net Of California
Health Net of
Health Net Health Plan of
--IFS at 'BBB'.
((Comments on this story may be sent to [email protected]))
|Copyright:||(c) 2014 ProQuest Information and Learning Company; All Rights Reserved.|