Moody's: UnitedHealth view negative

Moody's Investors Service said it affirmed the A3 senior unsecured debt rating of UnitedHealth Group Inc.'s and changed its outlook to negative from stable following the announcement that the company may increase the debt component of its capital structure to the 40% range.

Also affirmed were PacifiCare Health Systems, Inc.'s subordinated debt rating at Baa2 and UnitedHealth Group Inc.'s short-term debt rating for commercial paper at P-2.

"While interest coverage metrics, supported by the UnitedHealth's diverse earnings and cash flow streams, are expected to remain very strong, the company's financial flexibility would be diminished at the higher debt levels being contemplated," Steve Zaharuk, vice president and senior credit officer, said in a written statement.

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