On Aug. 10, 2006, Standard&Poor's Ratings Services revised its outlook on UnitedHealth Group Inc. (NYSE:UNH) and UNH's operating companies to negative from stable. At the same time, Standard&Poor's affirmed its 'A/A-1' counterparty credit rating on UNH and its various counterparty credit and financial strength ratings on the subsidiaries. The outlook was revised to negative because of the potential for a significant restatement of prior-period earnings in connection with stock-option accounting, which could materially erode the quality of UnitedHealth's capital. The company and its accountants are still determining the appropriate accounting treatment for the stock-option plan, and an estimated range of outcomes is unknown. The existence of this uncertainty is placing pressure on the company's financial condition
