Fitch to rate Aetna notes A-

Fitch Ratings said that it expects to assign A- ratings to Aetna Inc.'s planned $500 million issue of 10-year senior notes.

The outlook is stable.

The ratings are equivalent to the ratings assigned to Aetna's outstanding senior notes, the agency said.

The planned issue is expected to replace $450 million of senior notes in Aetna's capital structure that mature June 15, the agency said. As a result, the issue is viewed as having little impact on Aetna's interest coverage or financial leverage.

Aetna's ratings reflect the organization's strong competitive position in the health insurance and managed care sector, consistently solid profitability and interest coverage, and overall strong risk-based capital ratios, the agency added.

The ratings also consider the increase in the company's financial leverage in recent years and the uncertain impact health care reform legislation could have on Aetna's operations and financial profile as it is implemented over the next few years, Fitch said.

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