Moody’s affirms Health Care Service Corporation’s ratings, changes outlook to negative

Moody’s Investors Service has affirmed Chicago-based Health Care Service Corporation’s insurance financial strength rating at “A1” and its senior unsecured debt rating at “A2.” Moody’s also changed the outlook on the ratings from stable to negative.

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The rating affirmations reflect HCSC’s strong financial profile driven by its solid capital position and low financial leverage.

The outlook revision is based on HCSC’s substantial losses from the Affordable Care Act’s exchange policies since 2014. It also reflects the possibility of future losses from ACA policies and a weakening in HCSC’s capital base over the past few years.

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