Fitch affirms Humana

Fitch Ratings said it affirmed Humana, Inc.'s long-term issuer default rating at BBB, short-term issuer default rating at F2, 6.45% senior unsecured notes due June 1, 2016 at BBB-, 7.2% senior unsecured notes due June 15, 2018 at BBB-, 6.3% senior unsecured notes due Aug. 1, 2018 at BBB-, 8.15% senior unsecured notes due June 15, 2038 at BBB- and $600 million commercial paper program at F2.

The affirmation follows news of Humana's definitive agreement to acquire Concentra, Inc. for about $790 million in cash.

The outlook is negative.

The agency said it views the Concentra acquisition as a reasonable use of Humana's capital that will provide the company's membership and retail consumers with access to a variety of occupational medicine, urgent care and physical therapy services.

Concentra's focus on health care delivery services as opposed to providing more traditional health insurance or managed care will diversify Humana's business platforms and product offerings, Fitch said.

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