S&P: No change for Sierra Health

Standard & Poor's said the BB+ ratings and positive outlook on Sierra Health Services Inc. would not be affected by the company's announcement that it expects to incur a loss on its enhanced Medicare Part D prescription drug product offering.

The company has not yet determined a range of potential loss, but based on an extrapolation of January 2007 losses, S&P said it believes losses could be $30 million to $40 million for 2007. Despite this, operating performance would still likely be considered strong, although diminished compared with 2006, the agency said.

The existing rating reflects Sierra's well-established core market position in Nevada, strong core market profitability and good holding-company liquidity, S&P said.

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