Moody's rates Cigna debt Baa2

Moody's Investors Service said it assigned a Baa2 senior debt rating to Cigna Corp.'s $600 million of new long-term debt.

The outlook is stable.

Cigna expects to use the proceeds of the new issuance for general corporate purposes including the refinancing of about $225 million of debt due in October 2011.

With the additional debt, Cigna's adjusted financial leverage is not expected to change appreciably from its current level of about 44% as of Dec. 31, the agency said.

The rating reflects the company's strong business profile driven by its strong national presence and brand name, large membership base and broad range of group benefits products, the agency added.

The ratings also consider that the majority of Cigna's customer base consists of self-insured employers, which mitigates the risk of unanticipated increases in healthcare costs, Moody's said.

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