OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has removed from under review with positive implications and downgraded the Financial Strength Rating to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating to “bb” from “bbb-” of QCA Health Plan, Inc. (Little Rock, AR). The outlook assigned to these Credit Ratings (ratings) is negative. Concurrently, AM Best has withdrawn the ratings of QCA Health Plan, Inc. at the company’s request to no longer participate in AM Best’s interactive rating process.
The ratings reflect QCA Health Plan’s balance sheet strength, which AM Best categorizes as adequate, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The rating downgrades reflect the projected decline in risk-adjusted capitalization following the $30 million dividend paid by QCA Health Plan, Inc. upon the closing of its acquisition by Centene Corporation (Centene) during the second quarter of 2019. While Centene has sufficient financial flexibility to support QCA Health Plan, Inc. if needed, AM Best has not received any information regarding Centene’s future plans for QCA Health Plan, Inc. The negative outlooks are due to AM Best’s concern that the current capital level at QCA Health Plan, Inc. may be insufficient to support the company’s business and investment risks.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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