Health Net Stocks Downgraded After Lost Contract

Dow Jones Newswires reported today that the Standard and Poor as well as Moody’s ratings of Health Net have been downgraded into “junk territory.” The news comes after Health Net issued a press release stating that they had lost their Tricare  health insurance contract to Aetna.

Health Net is now rated as  BB- by S&P, which keeps them “barely in investment-grade territory,” the newswire said. Moody’s has rated Health Net as Ba3 or “Three steps into junk.”

Health Net runs its Northwest operations out of Rancho Cordova. The company has already laid off dozens of workers since the beginning of the year, but no announcements have been made of any more layoffs as a result of the latest news.

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Posted by Anne Lowe on Jul 15 2009. Filed under Business. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.