The counterparty credit rating on UnitedHealth Group Inc. (NYSE: UNH) reflects its very strong competitive position, good diversification, effective management strategy, extremely strong earnings profile, very strong financial flexibility, and good statutory capitalization. UNH has good access to the external capital markets, while the consolidated cash flow from operations provides the company with a great deal of flexibility to use funds both internally and externally. UNH's plan to acquire PacifiCare Health Systems Inc. (PHS), a transaction valued at $8.2 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.
