Announcement of Periodic Overview: Moody’s publicizes completion of a periodic overview of rankings of Cigna Company
World Credit score Analysis – 24 Jul 2020
New York, July 24, 2020 — Moody’s Traders Service (“Moody’s”) has accomplished a periodic overview of the rankings of Cigna Company and different rankings which are related to the identical analytical unit. The overview was carried out by means of a portfolio overview wherein Moody’s reassessed the appropriateness of the rankings within the context of the related principal methodology(ies), latest developments, and a comparability of the monetary and working profile to equally rated friends. The overview didn’t contain a score committee. Since 1 January 2019, Moody’s observe has been to problem a press launch following every periodic overview to announce its completion.
This publication doesn’t announce a credit standing motion and isn’t a sign of whether or not or not a credit standing motion is probably going within the close to future. Credit score rankings and outlook/overview standing can’t be modified in a portfolio overview and therefore should not impacted by this announcement. For any credit score rankings referenced on this publication, please see the rankings tab on the issuer/entity web page on www.moodys.com for probably the most up to date credit standing motion info and score historical past.
Key score issues are summarized beneath.
Moody’s Baa2 senior unsecured debt score of Cigna Company (Cigna) and the A2 insurance coverage monetary power (IFS) rankings of its rated insurance coverage subsidiaries are primarily based on the corporate’s sturdy market place, decrease danger enterprise model wherein the majority of its insurance coverage enterprise consists of administrative companies solely (ASO), and the sturdy capital place of its regulated insurance coverage subsidiaries. The rankings additionally replicate that, with the acquisition of Categorical Scripts, Inc., greater than half of the cash flows to the father or mother are non-regulated, which reduces danger. Moreover, the mix with ESI ought to improve Cigna’s skill to raised handle total affected person well being and decrease prices as a result of advantages of the mixed scientific and prescription information and improved skill to handle gaps in care.
These strengths are mitigated by excessive leverage, a excessive degree of goodwill, integration danger, and authorized danger.
This doc summarizes Moody’s view as of the publication date and won’t be up to date till the following periodic overview announcement, which can incorporate materials adjustments in credit score circumstances (if any) throughout the intervening interval.
The principal methodology used for this overview was US Well being Insurance coverage Corporations Methodology revealed in November 2019. Please see the Ranking Methodologies web page on www.moodys.com for a replica of this system.
This announcement applies solely to EU rated and EU endorsed rankings. Non EU rated and non EU endorsed rankings may be referenced above to the extent needed, if they’re a part of the identical analytical unit.
This publication doesn’t announce a credit standing motion. For any credit score rankings referenced on this publication, please see the rankings tab on the issuer/entity web page on www.moodys.com for probably the most up to date credit standing motion info and score historical past.
Dean Ungar, CFA VP - Senior Credit score Officer Monetary Establishments Group Moody's Traders Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 Scott Robinson, CFA Affiliate Managing Director Monetary Establishments Group JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 Releasing Workplace: Moody's Traders Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653
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