S&P lowers Excellus view to negative

Standard & Poor’s said it affirmed Excellus Health Inc.’s A- long-term counterparty credit and financial strength ratings, along with the ratings on its core operating subsidiaries.

The agency also said it revised the group’s outlook to negative from stable.

S&P also said it affirmed the A- ratings on Excellus’s wholly owned subsidiaries, MedAmerica Insurance Co., MedAmerica Insurance Co. of New York and MedAmerica Insurance Co. of Florida and revised the outlook to negative from stable based on the capital support agreement provided by Excellus.

The negative outlook reflects the group’s deteriorated operating performance and capital adequacy, which will remain pressured during the next 12 to 18 months, the agency said.

Although the company is expected to improve its capital and earnings to a level appropriate for the rating by 2016 through operating and capital-restoration initiatives, the negative outlook reflects the execution risk and uncertainty in reaching these targets given continued weakness, S&P said.

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