S&P affirms WellPoint

Standard & Poor's said it affirmed its A- counterparty credit rating on WellPoint Inc. and the A+ counterparty credit and financial strength ratings on WellPoint's core subsidiaries.

The outlook is negative.

The agency said the ratings on the core operating companies are based on the companies' very strong competitive position in the managed care industry, expanding product innovation and capabilities, excellent brand value, leading local market positions across numerous states, strong and stable earnings from diversified sources and good capitalization.

Partially offsetting these positive factors are high levels of goodwill and intangibles accumulated through merger and acquisition activity, lower-than-expected earnings in 2008, a weak economic forecast in 2009 and ongoing competitive and regulatory pressures, S&P said.

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