Moody's Investors Service said a federal judge's ruling to block Aetna's proposed $37 acquisition of Humana alleviated the threat of job cuts and will positively affect the credit of the insurer's Hartford headquarters, the region and Connecticut, reports Hartford Courant.
Aetna — which employs roughly 6,100 in Connecticut — stands as Hartford's fourth biggest taxpayer and among the state's top 10 employers, according to the report. Moody's said combining Aetna and Louisville, Ky.-based Humana would contribute to the long-term trend of decreasing insurance-related jobs in the state.
"Lost jobs would be a particular blow to financially struggling Hartford," according to the credit agency. The state capital faces a $22.6 million deficit this fiscal year and a more than $50 million budget gap next year, Hartford Courant reports. Moody's said job losses would up vacancy rates, which would negatively affect the commercial real estate market and the local economy.