Fitch Ratings said new debt to finance WellPoint's $4.9 billion deal for Amerigroup would weaken key financial measures, and the ratings agency downgraded the insurer's long-term issuer default and issue ratings. The outlook for WellPoint's long-term issuer default rating is negative, the rating agency said.
Fitch lowered WellPoint's long-term issuer default rating to A- and dropped the issue ratings to BBB+, according to a news release.
The New York rating agency also affirmed the AA- rating for the insurer financial strength ratings for WellPoint's operating subsidiaries. Nonetheless, Fitch said the ratings' outlook was negative.