Moody's affirms Humana

Moody's Investors Service said it affirmed Humana Inc.'s (senior debt at Baa3) ratings as well as the A3 insurance financial strength ratings of its operating companies: Humana Insurance Co. and Humana Medical Plan, Inc.

The outlook remains negative.

Moody's said the affirmation of Humana's ratings reflects the company's successful remediation of the pricing/benefit design flaws in certain stand alone Part D prescription drug products, which depressed 2008 earnings.

Notably, the agency said Humana's 2008 results were in line with rating expectations, allowing for the PDP losses, and first-quarter 2009 results indicate that the pricing for the company's 2009 PDP product offerings should not produce similar losses.

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