Moody's reviews Humana

Moody's Investors Service said it placed Humana Inc.'s Baa3 senior debt ratings under review for downgrade following the announcement that it was not awarded a renewal of its Tricare managed care contract for the South Region.

The agency said the loss of the contract effective April 1, 2010 will result in a loss of about $3.5 billion of annual revenue and an estimated $100 million annual pre-tax income for Humana.

The loss of the contract also would affect the company's business profile, with the loss of almost 3 million medical members, or 35% of total membership as of March 31, according to the agency.

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