Moody's could up Coventry

Moody's Investors Service said it placed the Baa3 senior debt rating of Coventry Health Care, Inc. on review for upgrade following the announcement that Aetna Inc. entered into a definitive agreement to acquire Coventry.

The A3 insurance financial strength rating of Coventry's operating subsidiaries have also been placed on review for upgrade.

Moody's said it anticipates that Aetna will assume and guarantee Coventry's $1.6 billion of senior notes upon the close of the transaction.

The rating agency said that its review will focus on the completion of the transaction and Aetna's level of support for the operating subsidiaries and debt being acquired from Coventry, as well as its integration plans for the business.

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