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Fitch: Anthem Remains on Negative Watch Following Termination of Merger Agreement with Cigna
May 12, 2017 / 8:34 PM / 3 months ago

Fitch: Anthem Remains on Negative Watch Following Termination of Merger Agreement with Cigna

(The following statement was released by the rating agency) CHICAGO, May 12 (Fitch) Fitch's ratings of Anthem Inc. (ANTM) will remain on Rating Watch Negative following the company's announcement today that it has delivered to Cigna Corp. (CI) a notice terminating the merger agreement between the two companies. Today's announcement from ANTM follows a Delaware judge's ruling yesterday denying the company's request for a 60-day extension of a restraining order enjoining CI from terminating its merger agreement with ANTM. Fitch originally placed the ANTM's ratings on Rating Watch Negative on July 24, 2015, following the companies' announcement that they had entered into a definitive agreement under which ANTM would acquire CI. Fitch expects to resolve the Rating Watch on ANTM's ratings over the course of the next two weeks, with the resolution incorporating Fitch's expectation of the companies' go-forward capitalization metrics and operating strategies, as well as potential effects arising from ongoing merger-related litigation between ANTM and CI. Fitch's current ratings on ANTM are as follows: Anthem, Inc. --Long-Term Issuer Default Rating (IDR) 'BBB+'; --Short-Term IDR 'F2'; --$2.5 billion commercial paper program 'F2'. The following debt issues are rated 'BBB': --5.875% senior notes due 6/15/2017; --1.875% senior notes due 1/15/2018; --2.300% senior notes due 7/15/2018; --7.000% senior notes due 2/15/2019; --2.250% senior notes due 8/15/2019: --4.350% senior notes due 8/15/2020; --3.700% senior notes due 8/15/2021; --3.125% senior notes due 5/15/2022; --3.300% senior notes due 1/15/2023; --3.500% senior notes due 8/15/2024; --5.950% senior notes due 12/15/2034; --5.850% senior notes due 1/15/2036; --6.375% senior notes due 6/15/2037; --5.800% senior notes due 8/15/2040; --4.625% senior notes due 5/15/2042; --2.750% senior convertible debentures due 10/15/2042; --4.650% senior notes due 1/15/2043; --4.65% senior notes due 8/15/2044; --5.100% senior notes due 1/15/2044; --4.850% senior notes due 8/15/2054. The following debt issue is rated 'BBB-': --1.900% subordinated notes due 5/1/2028. Anthem Holding Corp. --Long-Term IDR 'BBB+'. Anthem Insurance Companies, Inc. --Long-term IDR 'A'; --9.000% surplus notes due 4/1/2027 'A-'; --IFS 'A+'. The IFS ratings of the following ANTM subsidiaries are 'A+': Anthem Blue Cross Life & Health Insurance Company Anthem Health Plans, Inc. Anthem Health Plans of Kentucky, Inc. Anthem Health Plans of Maine, Inc. Anthem Health Plans of New Hampshire, Inc. Anthem Health Plans of Virginia, Inc. Blue Cross of California Blue Cross and Blue Shield of Georgia, Inc. Blue Cross Blue Shield Healthcare Plan of Georgia, Inc. Community Insurance Company, Inc. Empire HealthChoice HMO, Inc. Empire HealthChoice Assurance, Inc. HealthKeepers, Inc. Healthy Alliance Life Insurance Company HMO Missouri, Inc. Matthew Thornton Health Plan, Inc. Rocky Mountain Hospital & Medical Service, Inc. Contact: Primary Analyst Mark Rouck, CPA, CFA Senior Director +1-312-368-2085 Fitch Ratings, Inc. 70 West Madison Street Chicago, IL 60602 Secondary Analyst Brad Ellis, CFA Director +1-312-368-3158 Media Relations: Hannah James, New York, Tel: + 1 646 582 4947, Email: hannah.james@fitchratings.com. Additional information is available on www.fitchratings.com ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT 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. 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