Moody’s Ratings has downgraded UnitedHealth Group’s outlook from stable to negative, citing “a number of adverse trends simultaneously.”
The ratings agency also affirmed the company’s strong credit ratings, including its long-term issuer and senior unsecured debt ratings, as well as its short-term commercial paper rating. UnitedHealthcare’s financial strength rating was maintained as well.
Moody’s downgraded UnitedHealth because of the higher than expected medical cost trend within its Medicare Advantage business, increased leverage post-cyberattack on Change Healthcare, a decline in the company’s risk-based capital level, reduced interest coverage, and potential credit risk from reported Justice Department investigations into its MA billing practices.
“As a result of the adverse conditions UnitedHealth faces, the company’s financial and operating performance has fallen below its typical standards. However, according to us, the company will likely be able to navigate these difficulties, and it has already taken some steps to address them,” analysts wrote.
UnitedHealth’s ratings may return to a stable outlook if earnings growth improves in 2026, debt levels decrease, and legal issues don’t significantly impact the business. Ratings could be downgraded if debt levels remain high, legal and regulatory issues worsen, or financial performance declines, with similar risks for UnitedHealthcare.
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