S&P lowers WellCare

Standard & Poor's said it lowered the counterparty credit rating on WellCare Health Plans Inc. to B from B+. The rating remains on CreditWatch, where it was placed on Oct. 25, 2007 with negative implications.

According to S&P, the downgrade reflects WellCare's lower-than-expected level of statutory surplus.

The agency said ratings are on watch to reflect the potential impact of sustained business and financial profile challenges, which could further pressure the company's credit profile.

Concerns include ongoing uncertainty about the scope of the investigation and the potential for contract rescission, S&P noted.

© 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.