Moody's downgrades Cigna

Moody's said it downgraded Cigna Corp.’s long-term ratings, including its senior unsecured debt rating to Baa2 from Baa1, upon the closing of its acquisition of Express Scripts Holding Co. (ESI, Baa2).

Similarly, the insurance financial strength (IFS) ratings of Cigna's main insurance subsidiaries have been downgraded to A2 from A1.

The ratings of Cigna Corp. and of Cigna Holding Co. for commercial paper have been confirmed at Prime-2.

The outlooks for all rated entities are stable.

“The one-notch downgrades of Cigna's senior debt and IFS ratings reflect the significant increase in Cigna's financial leverage and decrease in overall financial flexibility that has resulted from the acquisition of ESI,” Moody’s said in a news release.

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