Aetna (AET), Humana (HUM) Ratings Remain On CreditWatch Negative at S&P

Standard & Poor's Ratings Services said today that its ratings on Aetna Inc./Aetna Health Holdings LLC, as well as its ratings on Aetna's core operating companies remain on CreditWatch with negative implications. Our ratings on Humana Inc. and its core operating companies all remain on CreditWatch with positive implications. We placed all these ratings on CreditWatch on July 3, 2015, following the announcement that Aetna intended to acquire Humana. We expect the proposed acquisition to close in the second half of 2016, but it still requires a number of approvals.

Currently the operating performance and balance-sheet conditions of both companies are consistent with our 2015 expectations. The CreditWatch negative placement for Aetna means that we could downgrade the company by one notch, depending on our view of deal risk. The CreditWatch positive placement for Humana means a potential upgrade of up to two notches, depending on our view of its status under our group methodology after the transaction closes.

We have determined, based solely on the developments described herein, that no rating actions are currently warranted. Only a rating committee may determine a rating action and, as these developments were not viewed as material to the ratings, neither they nor this report were reviewed by a rating committee.

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