Fitch: Humana outlook negative

Fitch Ratings said it revised Humana Inc.'s outlook to negative and affirmed its long-term issuer default rating at BBB, senior notes at BBB- and commercial paper and short-term issuer default ratings at F2.

The agency said the outlook revision reflects uncertainty regarding Medicare reimbursement rates beginning in 2010 based on preliminary information from CMS and potential health-care reform; general economic pressures that could impact membership trends and investment returns; and weaker financial flexibility given the difficult capital market conditions.

Fitch's ratings for Humana reflect good operating performance and cash flow generation, adequate operating company capitalization, stable balance sheet fundamentals and a good competitive position in several markets and product lines.

The ratings also consider the capital demands caused by strong business growth in the Medicare market and the dependence and concentration in government business, the agency said.

The debt-to-EBITDA ratio is approximately 1 times.

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