Moody’s reviews Cigna

Moody's Investors Service said it placed Cigna Corp.’s debt ratings on review for downgrade (senior at Baa1) as well as the A1 insurance financial strength ratings of certain of its operating subsidiaries.

The review follows the company’s announced acquisition of Express Scripts Holding Corp. (Baa2, stable) in a deal valued at $67.2 billion, including about $22 billion in new issuance and $13.1 billion in assumed Express Scripts debt.

The deal will be financed 50/50 cash and equity represents a 31% premium to Express Scripts’ closing stock price pre-announcement. As a result of the deal, Cigna's debt will increase to about $41.1 billion from $5.4 billion.

The implications for this transaction on Express Scripts will be addressed in separate press release.

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