TEXT-S&P drops HealthSpring Inc. rtg at company's request

Wed Nov 7, 2012 9:07am EST

Nov 07 -

-- Cigna Corp. has requested that we withdraw our rating on its subsidiary HealthSpring Inc.

-- Subsequently, we affirmed our 'BBB-' long-term counterparty credit rating on HealthSpring and then withdrew the rating.

Standard & Poor's Ratings Services said today that it affirmed its 'BBB-' long-term counterparty credit rating on HealthSpring Inc., and then withdrew the rating.

HealthSpring Inc., a Nashville, Tenn.-based Medicare-focused health plan, was acquired by Cigna Corp., a Hartford, Conn.-based diversified health care services company, on Jan. 31, 2012. HealthSpring Inc. continues to exist as an intermediate holding company within the Cigna Corp. organization.

Prior to the rating withdrawal, we had a positive outlook on HealthSpring. This was based on our view that HealthSpring, which we deem as a "strategically important" entity within the Cigna Corp. organization, was evolving toward "core" group status. Designation of core group status would have resulted in an upgrade.

RELATED CRITERIA AND RESEARCH

-- HealthSpring Inc. Rating Raised To Investment-Grade 'BBB-' From 'BB-' On Completion Of Acquisition By Cigna, Jan. 31, 2012

-- Group Methodology, April 22, 2009

RATINGS LIST

Ratings Affirmed

HealthSpring Inc.

Counterparty Credit Rating BBB-/Positive/--

Ratings Withdrawn

To From

HealthSpring Inc.

Counterparty Credit Rating NR/--/-- BBB-/Positive/--

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