S&P cuts WellCare outlook to stable

Standard & Poor's said it revised its outlook on WellCare Health Plans Inc. to stable from positive.

The agency also said that it affirmed its B counterparty credit rating on the company.

WellCare has said that it has reached significant resolution in its pending securities class action and civil lawsuits with various government agencies, the agency added.

"The revision of the outlook to stable from positive reflects the potential for reduced liquidity and financial flexibility as a result of these expected payments," noted S&P credit analyst Hema Singh.

"We expect that WellCare will pay about $87 million in 2010 and $70 million in 2011, mostly from unregulated cash and expected dividends from its operating subsidiaries."

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