Fitch affirms Aetna after $5.7 billion acquisition

Fitch Ratings said it affirmed the A issuer default rating of Aetna Inc. and the AA- insurer financial strength ratings of various Aetna insurance operating subsidiaries and removed the ratings from Rating Watch negative.

The outlook is negative.

The action follows news that Aetna completed its acquisition of Coventry Health Care, Inc., Fitch said.

The company announced in August 2012 that it signed a definitive agreement to acquire Coventry for cash and stock valued at about $5.7 billion, the agency said.

The ratings reflect the organization's major market position and significant size and scale, strong profitability and interest coverage and overall solid balance sheet characteristics, Fitch said.

The ratings also consider recently elevated financial leverage and what is viewed as modest deterioration in Aetna's capitalization metrics and ongoing sector-wide operational uncertainty tied to health care reform, the agency added.

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