S&P affirms Humana

Standard & Poor's said it affirmed the BBB counterparty credit rating on Humana Inc.

The outlook remains stable.

Humana's recent announcement that an incorrect actuarial assumption led to a benefit design error on a portion of its 2008 Medicare Part D standalone prescription business does not change the overall view of its operating performance, the agency said.

Ratings reflect the company's strong competitive position, earnings from diversified sources of health insurance revenue, capitalization and levels of cash at the holding company, the agency said.

Offsetting factors are the company's Medicare business concentration, its low return on revenue relative to its peers and the level of goodwill on the books, S&P said.

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