S&P lowers UnitedHealth insurance subsidiaries

S&P said it affirmed the A+/A-1 issuer credit rating on UnitedHealth Group Inc.

The outlook is stable.

The agency also said it lowered the long-term issuer credit and financial strength ratings on UnitedHealth's core insurance subsidiaries to AA- from AA.

The agency said it realigned the ratings on UnitedHealth's insurance operating companies and the holding company to reflect the group's evolving credit profile as a diversified health insurance/health care services business.

The downgrades of the insurance companies reflect an expectation that their run-rate regulated capitalization in 2019 to 2020, while remaining significantly above regulatory requirements, will be lower than expectations at the prior rating level, S&P said.

The stable outlook reflects a view that UnitedHealth will generate strong revenue and earnings growth through 2020, the agency said.

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