The surviving corporate entity will consist of AUSHC and its HMO subsidiaries; various HMOs, including some acquired from NYLCare Health Plans Inc.
Aetna's existing long-term debt will be assumed by ING as part of the sale, but AUSHC will issue commercial paper to replace existing commercial paper issued by Aetna.
AUSHC is strongly positioned as the market leader in the health benefits and group insurance business, with strong competitive positions in several key markets and product lines.
Fitch expects AUSHC to maintain financial leverage at or below 20% following the completion of the spin-off.
We are pleased that the Court has agreed with us that there is a clear and present need to protect our members and plan sponsors," said AUSHC
Northern New Jersey General Manager Betsy Wertheimer, who attended today's court hearing.
While earnings at the largest operating unit, AUSHC, are considered very strong, they have been lower than Standard & Poor's earnings expectations for AUSHC at the time of the merger.
While AUSHC plans to integrate NYLCare over a longer time period than the integration of U.
Currently, ALIC and AUSHC
are the main sources of debt service.
OUTLOOK: NEGATIVE While AUSHC
plans to integrate NYLCare over a longer time period than the integration of U.