Fitch Ratings has downgraded the insurer financial strength ratings for various WellPoint insurance company subsidiaries to "A+" from "AA-."
Additionally, Fitch downgraded its ratings on WellPoint's senior unsecured notes to "BBB" from "BBB+." The rating actions were driven by Fitch's view that the health insurer's run-rate ratios of debt-to-EBITDA and debt-to-capital aren't likely to decline to approximately 2.2x and 25 percent by the end of 2015. Fitch had previously identified inability to meet these rating sensitivities as a factor that could lead to downgrades for WellPoint.
This week, Fitch also assigned a "BBB" rating to WellPoint's planned issue of senior notes of various maturities. The rating reflects the expectation that the insurer's financial leverage and capitalization metrics will be consistent with the rating service's "BBB" insurer financial strength rating category guidelines.