S&P lowers Group Health

Standard & Poor's said it lowered its financial strength rating on Group Health Cooperative to BBB- from BBB and lowered its short-term rating on the company's commercial paper to A-3 from A-2. The outlook is negative.

"A generally higher-than-expected level of utilization as well as several high cost claims hampered GHC's operating performance in the third quarter of 2011," said S&P credit analyst Jon Reichert in a news release.

The agency said the negative outlook reflects concern that Group Health's operating performance will continue to be weak. The rating anticipates positive operating results in 2012 and that the balance sheet will remain strong, albeit diminished, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.