S&P: Kanawha unchanged

Standard & Poor's said that Humana Inc.'s (BBB/stable) announcement that it has signed a definitive agreement to purchase Kanawha Insurance Co.'s (BBB/Watch positive) parent company, KMG America, would not affect the ratings on Kanawha.

The agency said that the $187.7 million transaction, which includes estimated assumed debt of $50 million, will be financed through a combination of cash and debt.

S&P noted that the transaction is expected to be completed in the first quarter of 2008.

Upon completion of the transaction, S&P said it expects to raise the ratings on Kanawha by one notch to BBB+, noting that this will reflect the company's expected status as strategically important to Humana.

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