NEW YORK (Standard&Poor's) Oct. 20, 2010--Standard&Poor's Ratings Services today said it assigned its 'A-' rating on UnitedHealth Group Inc.'s (NYSE:UNH) planned issuance of $750 million in senior unsecured notes. The issuance will consist of a mix of 10-year and 30-year maturities. The rating on the new issuance reflects UnitedHealth's very strong business profile, improving earnings and cash flow, and strong liquidity and financial flexibility. Offsetting factors include the company's exposure to stressed industry fundamentals, including the increased risk of regulatory intervention on pricing and a relatively aggressive (though recently tempered) share repurchase strategy. We expect UnitedHealth to use the offering proceeds primarily to refinance outstanding debt that is scheduled to mature within the next six months.
