S&P downgrades Cigna

S&P said it lowered the issuer credit rating on Cigna Corp. to A-/A-2 from A/A-1 and the ratings on Cigna's senior unsecured debt to A- from A.

The agency also said it lowered the financial strength and issuer credit ratings on Cigna's operating subsidiaries, Connecticut General Life Insurance Co. and Cigna Health and Life Insurance Co., to A from AA-.

Cigna has received all state regulatory approvals to complete its acquisition of pharmacy benefit manager, Express Scripts Holding Co., S&P said.

The agency said it removed all of the ratings from CreditWatch with negative implications, where they were placed in March.

The outlook is negative.

The rating on Cigna's subsidiary Halfmoon Parent Inc., which will become the new ultimate holding company of the group once the deal formally closes, is unaffected.

The ratings reflect an opinion that Cigna's acquisition of Express Scripts will result in a stronger business than Cigna and Express Scripts had on their own, but with integration and client-retention risks and elevated financial leverage, S&P said.

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