Moody's lifts WellCare

Moody's Investors Service said it upgraded WellCare Health Plans, Inc.'s senior secured debt rating to Ba1 from Ba3. This rating action concludes the review for upgrade that began June 2.

The outlook is stable.

The rating agency said that the rating action is based on the company's solid earnings results, membership growth and its improving balance sheet and capital position. Moody's also noted the expanding Medicaid and Medicare businesses, as well as its profitable and strongly subscribed Medicare Part D product. The company reduced its debt-to-EBITDA ratio on a trailing 12-month basis to less than 1 times as of June 30.

WellCare's strengths include its leading position in the Florida Medicaid market, the financial protection provided by the state for long duration hospital stays and WellCare's contracts with providers, according to Moody's.

Offsetting the company's strengths is WellCare's reliance on state Medicaid contracts and on government Medicare contracts, Moody's said.

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