-- WellPoint's acquisition of Amerigroup will likely close by year-end
-- We are keeping our 'BB+' counterparty credit rating on Amerigroup on
-- We could raise the rating by up to four notches to be consistent with
our rating on WellPoint Inc.
On Oct. 9, 2012, Standard & Poor's Ratings Services said that its 'BB+'
long-term counterparty credit rating on Amerigroup Corp. (AGP) remains
on CreditWatch with positive implications where it was initially placed July 9,
2012, following WellPoint Inc.'s announcement that it has entered into
an agreement to acquire Amerigroup.
The CreditWatch placement reflects Amerigroup's anticipated acquisition by a
higher-rated entity (WellPoint), which likely will result in an upgrade by up
to four notches. The company expects the acquisition to close by year-end 2012.
We will continue to monitor Amerigroup's operating performance and financial
condition, as well as discuss its capital structure and role within the
acquiring firm with WellPoint's management. We expect Amerigroup's operating
health plans to operate as wholly owned subsidiaries of WellPoint. We expect
to raise our rating on Amerigroup by up to four notches to be consistent with
our 'A-/Stable/A-2' counterparty credit rating on WellPoint.
Related Criteria And Research
-- WellPoint Outlook Revised To Positive From Stable, Rating Affirmed On
Announced Amerigroup Acquisition, July 9, 2012
-- Use Of CreditWatch And Outlooks, Sept. 14, 2009
Ratings Remain On CreditWatch
Counterparty Credit Rating
Local Currency BB+/Watch Pos/--
Senior Unsecured BB+/Watch Pos
Complete ratings information is available to subscribers of RatingsDirect on
the Global Credit Portal at www.globalcreditportal.com. All ratings referenced
herein can be found on Standard & Poor's public Web site at
www.standardandpoors.com. Use the Ratings search box located in the left