Fitch upgrades Group Health

Fitch Ratings said it upgraded Group Health Cooperative's and Group Health Options, Inc.'s insurer financial strength ratings to BBB+ from BBB.

The agency also said it upgraded the ratings assigned to senior secured revenue bonds issued by the Washington Health Care Facilities Authority on behalf of Group Health to BBB+ from BBB.

The ratings remain on Rating Watch positive.

The upgrades follow the completion of a periodic review of Group Health's ratings, Fitch said.

The company announced in December 2015 that it would be acquired by a subsidiary of Kaiser Foundation Health Plan, Inc.

The acquisition is subject to various regulatory approvals, which are expected in late 2016 or early 2017, the agency said.

The upgrades reflect ongoing improvements in Group Health's financial performance and operating metrics, Fitch said.

The ratings also consider Group Health's strong, but geographically concentrated competitive position in Washington, comparatively small scale metrics, low financial leverage and strong risk-based capital ratios, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.