S&P lowers WellCare

Standard & Poor's said it lowered the counterparty credit rating on WellCare Health Plans Inc. to B- from B. The rating remains on CreditWatch, where it was placed on Oct. 25, 2007, with negative implications.

"The downgrade reflects the erosion of WellCare's earnings margin in the first nine months of 2008," S&P analyst Hema Singh said in a statement.

Ratings reflect a more challenging new business-origination climate for WellCare and certainly higher expenses for more compliance infrastructure and residual investigation expenses, the agency said. It also assumes that WellCare will not be barred from operating in its key markets.

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