(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
the two companies. Today's announcement from ANTM follows a
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
capitalization metrics and operating strategies, as well as
arising from ongoing merger-related litigation between ANTM and
Fitch's current ratings on ANTM are as follows:
--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-';
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.
Healthy Alliance Life Insurance Company
HMO Missouri, Inc.
Matthew Thornton Health Plan, Inc.
Rocky Mountain Hospital & Medical Service, Inc.
Mark Rouck, CPA, CFA
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
Brad Ellis, CFA
Media Relations: Hannah James, New York, Tel: + 1 646 582 4947,
Additional information is available on www.fitchratings.com
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