A.M. Best Assigns Debt Rating to Aetna Inc.

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has assigned a debt rating of “bbb+” to the $500 million 6.5% senior unsecured notes, due 2018 issued by Aetna Inc. (Aetna) (Hartford, CT) [NYSE: AET]. The rating outlook is stable.

The senior notes were issued from Aetna’s existing universal shelf registration filed December 5, 2005. The financial strength and issuer credit ratings assigned to Aetna and its insurance subsidiaries remain unchanged.

Proceeds from this offering are expected to be used by Aetna to reduce its outstanding commercial paper borrowings, which was approximately $854 million as of September 2, 2008.

This offering is expected to result in Aetna’s financial leverage moving to just under 30% by end of third quarter 2008. It is anticipated that Aetna will continue to manage its financial leverage to a target of 30%. Aetna has consistently reported positive operating results and has maintained strong liquidity, with earnings before interest and taxes (EBIT) interest coverage through June 30, 2008 of approximately 14 times. Aetna’s financial flexibility is supported by its $1.5 billion commercial paper program, parent company cash and good dividend capacity from its insurance subsidiaries. Aetna’s continued favorable net income has contributed to its solid capital levels and strong cash flow.

For Best’s Debt Ratings, all other Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.