Moody's: Amerigroup notes Ba3

Moody's Investors Service said it assigned a Ba3 senior debt rating to Amerigroup Corp.'s $75 million senior note issuance.

The new debt issuance is an add-on to the company's $400 million debt offering dated Nov. 16, 2011, Moody's said.

The outlook is stable.

The proceeds, along with other funding, will be used to refinance the $260 million of outstanding convertible notes due 2012, fund the acquisition of the operating assets and contract rights of Health Plus in New York, which is being purchased for $85 million and is expected to close in the first half of 2012, Moody's said.

The ratings are based on the company's concentration in the Medicaid market, offset by its good consolidated risk-based capital level, relatively stable financial profile and moderate financial leverage, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.