OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has commented that the financial strength ratings, issuer credit ratings and debt ratings of Humana Inc. (Humana) (Louisville, KY) (NYSE: HUM) and its insurance and health maintenance organization (HMO) subsidiaries remain unchanged. The outlook for all ratings is stable.
This comment follows the announcement that Humana has entered into a definitive agreement to acquire Concentra Inc. (Concentra), a privately held health care company with more than 300 medical centers in 42 states that provide occupational medicine, urgent care, physical therapy and wellness services. Humana plans to acquire Concentra for approximately $790 million in cash. The transaction is expected to close in December 2010.
This transaction is expected to be a source of business diversification for Humana as well as unregulated cash flows. Additionally, the Concentra medical centers will provide access to care for Humana medical members in certain geographic areas. The transaction also provides Humana with the opportunity to enhance its wellness programs.
Humana’s financial leverage will remain unchanged by the acquisition, and parent company liquidity is projected to be more than sufficient for the current ratings.
The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include “A.M. Best’s Ratings & the Treatment of Debt.” Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2010 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Co.
Bridget Maehr, 908-439-2200, ext. 5321
Senior Financial Analyst
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Sally Rosen, 908-439-2200, ext. 5280
Managing Senior Financial Analyst
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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