Moody's may downgrade Aetna

Moody's Investors Service said it placed on review for possible downgrade Aetna Inc.'s senior unsecured debt of A3, senior unsecured debt shelf rating of provisional A3, subordinated debt shelf rating a provisional Baa1 and preferred stock debt shelf rating of provisional Baa2; along with Aetna Life Insurance Co.'s insurance financial strength rating of Aa3 and long-term issuer rating of A1.

Aetna short-term debt rating for commercial paper was affirmed at prime-2 with a stable outlook.

The downgrade review follows the company's earnings release for the fourth quarter of 2009 and initial 2010 earnings guidance, Moody's said.

While Aetna's business profile remains strong with a strong national brand, diverse membership base and limited exposure to government products, there are concerns that the lower earnings results reported in 2009 and projected for 2010 would continue beyond the next year, the agency said.

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