Fitch docks Cigna on $24B debt financing for Express Scripts deal

Fitch Ratings downgraded Cigna to “BBB” from “A-” due to the health insurer’s financing of up to $24 billion in new debt to buy Express Scripts.

Advertisement

The ratings agency also removed Cigna from rating watch negative and assigned the health insurer a stable outlook.

“While Fitch believes that the potential strategic benefits associated with the combination of these companies are significant, today’s rating action reflects Fitch’s concerns regarding the sharp rise in financial leverage,” Fitch Ratings said.

Cigna and Express Scripts are expected to close their deal in the fourth quarter of 2018.

More articles on payers:
CMS erroneously sends termination letters to 38K+ BCBS Medicare members
Cigna hires global chief data and analytics officer
Medicaid covers 43% of childbirths

At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.

Advertisement

Next Up in Payer

Advertisement

Comments are closed.