Fitch could cut Aetna

Fitch Ratings said it placed the ratings of Aetna Inc. on negative watch.

The action follows Aetna's recent announcement that it has reached an agreement to acquire Humana Inc. in a cash and stock transaction valued at about $37 billion.

Fitch said the action reflects its concern about Aetna's expected financial leverage metrics following the close of the transaction, as well as potential operational and/or earnings disruptions that could arise as these two very large and complex organizations are integrated.

Assuming the acquisition and its financing are completed as currently envisioned, upon close of the acquisition, the agency expects to downgrade Aetna's ratings by one notch.

Fitch noted that Aetna's financial leverage has not fully returned to the level at which the company operated prior to its acquisition of Coventry Health Care, Inc. in 2013, although the company has been progressing in line with expectations.

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