Fitch rates WellPoint notes A-

Fitch Ratings said it assigned an A- rating to WellPoint, Inc.'s proposed issuance of $1.1 billion of senior notes and affirmed the long-term issuer default rating at A.

The outlook is stable.

The proceeds from WellPoint's debt issuance to be used to repay a portion of existing borrowings under the company's commercial paper program, pre-fund senior unsecured notes maturing in January 2012 and for general corporate purposes.

The affirmation of WellPoint's ratings follows a review of the company's first-half 2011 and full-year 2010 operating performance and reflects its strong and generally stable historical operating performance, very strong competitive position and solid statutory capitalization of its operating subsidiaries, the agency said.

The company's ratings also reflect an anticipated debt-to-EBITDA ratio that is higher than average for the health and managed care sector, very strong competition in the commercial health sector, ongoing risks associated with the implementation of health reform legislation and continued concerns related to unsustainable medical cost trends, the agency added.

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