TEXT - S&P raises Amerigroup rating to A-minus
Overview -- WellPoint Inc. completed its acquisition of Amerigroup Corp. on Dec. 24, 2012. -- We raised our counterparty credit rating on Amerigroup to 'A-' from 'BB+'. -- The stable outlook is based on our expectation that Amerigroup will remain a core entity within WellPoint. Rating Action On Dec. 26, 2012, Standard & Poor's Ratings Services raised its long-term counterparty credit rating on Amerigroup Corp. (AGP) to 'A-' from 'BB+'. At the same time, we removed the rating from CreditWatch with positive implications, where we placed it on July 9, 2012. The outlook is stable. Rationale Our four-notch upgrade of AGP following its acquisition by WellPoint Inc. is based on our designation of AGP as a core entity within WellPoint Inc. Based on our group rating methodology, we allow for more than three notches of rating support for core entities. AGP will now operate as wholly owned intermediate holding company under WellPoint Inc. AGP's group of health plans collectively supports the enterprise strategy, and the acquisition of AGP is in line with WellPoint's strategy to increase its market presence in the Medicaid segment. WellPoint has a significant existing presence in the Medicaid segment. Outlook The stable outlook is based on our expectation that AGP will remain a core entity within WellPoint Inc. Failure of WellPoint to support AGP, or significant loss/nonrenewal of Medicaid contracts within AGP's core markets would cause us to reevaluate AGP's core group status and our rating on the company. Related Criteria And Research -- Use Of CreditWatch And Outlooks, Sept. 14, 2009 -- Group Methodology, April 22, 2009 Ratings List Upgraded; CreditWatch/Outlook Action To From Amerigroup Corp. Counterparty Credit Rating Local Currency A-/Stable/-- BB+/Watch Pos/-- Senior Unsecured A- BB+/Watch Pos
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.