On Nov. 8, 2006, Standard&Poor's Ratings Services affirmed its 'A' counterparty credit rating on UnitedHealth Group Inc. (NYSE:UNH) and affirmed its various ratings on UNH's operating companies (see ratings list) as the company prepares to restate financials for the period 1994-2006. The outlook on all these companies remains negative. These noncash, nonoperational restatements for compensation expenses, using the variable accounting method of valuing stock options, could be material to certain prior period earnings but would have limited impact to the company's capital. The restatements would result in treating stock options in a manner consistent with Standard&Poor's historical view that the fair value of stock options (net of the exercise price) should be treated as expenses. Furthermore,
