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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - OCTOBER 29, 2009 12:00 AM (EDT)
A.M. Best Co. has placed the financial strength ratings of B+ (Good) and issuer credit ratings of "bbb-" of the subsidiaries of Health Net of the Northeast, Inc., which is a subsidiary of Health Net, Inc. (Health Net) (Delaware) [NYSE: HNT], under review with positive implications, as UnitedHealthcare, Inc. (UnitedHealthcare) (Delaware), a subsidiary of the ultimate parent, UnitedHealth Group, Inc. (UnitedHealth Group) (Minnetonka, MN), has agreed to acquire these entities. The entities included in this transaction are Health Net of Connecticut, Inc., Health Net of New Jersey, Inc., Health Net of New York, Inc., and Health Net Insurance of New York, Inc. The remaining ratings for Health Net and its other subsidiaries are unchanged.
The under review with positive implications reflects the financial strength of UnitedHealth Group, compared with Health Net.
Health Net will work with UnitedHealthcare to renew the customers currently enrolled in the northeast plans as they reach their annual renewal dates. Additionally, Health Net has entered into an agreement with UnitedHealthcare to service these customers through a post closing transition period.
The transaction is subject to regulatory approvals and is expected to close by July 2010. Should the transaction not be completed, the ratings of the subsidiaries of Health Net of the Northeast, Inc. would likely be downgraded due to the lack of strategic importance to Health Net.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.