S&P downgrades Excellus

Standard & Poor’s said it lowered the long-term counterparty credit and financial strength ratings on Excellus Health Plan Inc. and its core operating subsidiaries to BBB+ from A-.

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

S&P also said it lowered the ratings on the company’s wholly owned subsidiaries, MedAmerica Insurance Co., MedAmerica Insurance Co. of New York and MedAmerica Insurance Co. of Florida to BBB+ from A-.

The ratings on these entities are linked to the ratings on Excellus based on the capital support agreement provided by Excellus, the agency said.

The downgrades reflect the continued strain on the company’s capitalization despite trends of performance improvement, S&P said.

The agency also said it believes the company continues to face headwinds that make it unlikely to replenish capitalization to levels needed to support the current rating in the next year.

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