S&P gives A- to WellPoint debt

Standard & Poor's said it assigned its A- senior unsecured debt rating to WellPoint Inc.'s planned debt issuance, which is expected to consist of a mix of five-year, 10-year, 30-year and 40-year term notes.

The agency expects WellPoint to use the proceeds mainly to refinance existing maturities coming due in the next two years.

S&P believes this effective restructuring of WellPoint's balance sheet obligations will modestly enhance near-term liquidity and financial flexibility. Ultimately, it expects WellPoint to manage its financial leverage near 40% in the intermediate term.

S&P said it expects EBITDA interest coverage to be about 8 times to 9 times by year-end 2014, which is moderately conservative for the rating level.

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