Moody’s upgrades Bupa, debt

Moody's Investors Service said it upgraded the insurance financial strength rating of Bupa Insurance Ltd., the main U.K. private medical insurance business of the wider Bupa Group, to A1 from A2.

The agency also upgraded all debt ratings on securities issued by Bupa Finance plc.

The outlooks are stable.

Moody’s said the ratings upgrade reflects: (a) Bupa's geographically diverse portfolio and excellent market position in private medical insurance (PMI); (b) the relatively low risk profile of PMI; and (c) very good capitalization together with a strong track record in generating capital via retained earnings.

These strengths are somewhat tempered by Bupa's active inorganic growth strategy, which results in an elevated amount of goodwill on the balance sheet and somewhat high financial leverage, the agency added.

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