S&P revises MMM view to stable

S&P said it affirmed its B- counterparty credit and secured debt ratings on MMM Holdings Inc. and revised the outlook to stable from negative.

MMM reported first-half 2016 financial results that were generally ahead of expectations, the agency said. Medicare Advantage (MA) and Medicaid (Reforma) membership were down 5% and 4%, respectively, versus year-end 2015. However, first-half revenues increased by 7% year-over-year, and the adjusted EBIT margin improved to 5.3% versus 0.2% a year ago.

MMM's product/benefit changes (including network cuts) have hurt membership growth, but medical claims trends have been favorable.

Its Medicaid business, which is relatively new (the contract started in April 2015), has been profitable and performing better than S&P’s expectations.

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