S&P: Humana on negative watch

S&P said it placed the BB+ long-term counterparty credit rating on Humana Health Plans of Puerto Rico Inc. and the BBB long-term counterparty credit rating on Humana Insurance of Puerto Rico Inc. on CreditWatch with negative implications.

“The CreditWatch placement reflects the possibility that we may lower our ratings in the next 90 days following our assessment of the impact of Hurricanes Irma and Maria (and other storms that may follow) on the health insurers,” the agency said in a news release.

“We believe medical utilization may drop in the near term, which could benefit earnings. However, we note that a sustained public health crisis could ultimately lead to higher medical utilization in the coming months, which could depress performance.”

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