On July 6, 2005, Standard&Poor's Ratings Services affirmed its 'A' counterparty credit rating on UnitedHealth Group Inc. (NYSE:UNH) after UNH announced that it plans to acquire PacifiCare Health Systems Inc. (NYSE:PHS). The outlook on UNH remains stable. At the same time, Standard&Poor's placed its 'BBB-' counterparty credit rating on PHS on CreditWatch with positive implications. UNH's plan to acquire PHS, a transaction valued at $9.0 billion, will not affect the ratings on UNH. It does, however, moderately heighten operational and financial risk at UNH because of the cumulative acquisitions UNH has made in the past two years and the premium price it is paying for PHS. The sound strategic rationale for the combination is to fill
