S&P rates Aetna notes A-

Standard & Poor's said it assigned an A- senior unsecured debt rating to Aetna Inc.'s $700 million of 6¾% senior unsecured notes due 2037.

Proceeds will be used to repay outstanding commercial paper.

S&P said the rating is based on Aetna's counterparty credit rating, which reflects the company's strong competitive position, organic membership growth and strategic, skill-enhancing acquisitions.

The rating also benefits from the company's disciplined financial management culture, the agency said.

Offsetting these strengths, the company has limited business line diversification with modest percentage of income from non-medical businesses, according to Moody's. Aetna will likely face pricing competition and other pressures on margins, the agency said.

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