UnitedHealth Group Inc.

The stable outlook reflects our view that UNH will generate strong revenue and earnings growth in 2021-2022, with revenues increasing by 10%-11% to $283 billion-$285 billion in 2021, and 10%-12% to $315 billion-$317 billion in 2022. We forecast adjusted EBIT to increase to $23 billion-$24 billion in 2021 and $26 billion-$28 billion in 2022. UNH's ROR will be solid at 8%-9% through 2022. Assuming the CHNG acquisition closes during the second half of 2021, we expect UNH's financial leverage (on an S&P-adjusted basis) to increase to about 44%-45% by year-end. While this amount of leverage is above our long-term expectation, we expect debt repayment and earnings growth to drive leverage down to approximately 40%-41% by year-end 2022. Additionally, we project

...S&P Global Ratings' ratings on UnitedHealth Group Inc. (UNH) and its subsidiaries are the highest for a U.S. health insurance group and among the highest for global insurance and corporate groups. UNH's credit profile reflects its leadership in the U.S. health insurance market (44 million members as of June 30, 2021), unique competitive advantages stemming from the UHC-Optum combination (with each making up roughly half of operating earnings), and sustained above-industry-average earnings with adjusted EBIT return on revenue (ROR) of 8%-9% (2018-2020). We believe the UnitedHealthcare-Optum combination provides UNH with unique medical/operating cost and technology advantages versus peers. UNH's complementary business lines support the group's goals of improving health quality outcomes and access to healthcare while lowering the cost of care....

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