On Aug. 12, 2004, Standard&Poor's Ratings Services assigned its 'A' senior unsecured debt rating to UnitedHealth Group Inc.'s (NYSE:UNH) $1.5 billion senior unsecured notes, which are being issued in three tranches: $550 million, 3.375% notes maturing Aug. 15, 2007; $450 million, 4.125% notes maturing Aug. 15, 2009; and $500 million, 5.00% notes maturing Aug. 15, 2014. The proceeds will be used to repay the commercial paper used to finance the cash portion of the acquisition of Oxford Health Plans Inc. UNH's acquisition of Oxford adds a small degree of risk because of increasing goodwill and operational integration. Standard&Poor's gains some comfort in the level of goodwill because it is supported by continued extremely strong cash flows.
