TEXT-S&P: Wellpoint rating unaffected by CEO stepping down
Aug 29 - Standard & Poor's Ratings Services said today that WellPoint Inc.'s (A-/Stable/A-2) announcement that its Chief Executive has stepped down will not result in any rating action. For 2012 we expect WellPoint's total revenue to be more than $60 million and its operating income (EBIT) and cash flow (EBITDA) to be near $4 billion (6%-7% return on revenues) and $4.5 billion, respectively. If WellPoint were to perform at a level consistent with these expectations, adjusted EBITDA interest coverage would be within our intermediate-term range of expectation (8x-10x). These results, combined with an intermediate-term unregulated cash position of $1 billion, continue to support a very strong liquidity and financial flexibility assessment. Early last month we revised our outlook on WellPoint to stable from positive in connection with its announced plan to acquire Amerigroup Corp. (BB+/Watch Pos/--). We expect no change to the deal terms and for it to close by year-end 2012.
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