The counterparty credit rating on UnitedHealth Group Inc. (NYSE: UNH) reflects extremely strong earnings, very strong competitive position, good diversification, and differentiated positioning. UNH has good access to the external capital markets, the result of maintaining financial leverage consistent with the rating and strong and stable interest coverage. In addition, the consolidated cash flow from operations provides the company with a great deal of flexibility to use funds both internally and externally. Goodwill has remained a large share of equity over time, recently due to acquisitions and previously because UNH has aggressively pursued share repurchase rather than retaining its earnings. The extremely strong earnings and cash flows from operations currently support that level of goodwill. However, it is a negative
