trending Market Intelligence /marketintelligence/en/news-insights/trending/DfqxkwGZ6MuDsaMV5Kcfig2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Moody's downgrades Molina Healthcare over company restructuring, poor Q2 results

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Part Two IFRS 9 Blog Series: The Need to Upgrade Analytical Tools

2018 US Property Casualty Insurance Market Report


Fintech Funding Flows To Insurtech In February

Moody's downgrades Molina Healthcare over company restructuring, poor Q2 results

Moody's downgraded Molina Healthcare Inc. over poor financial results in the second quarter and its company-wide restructuring.

The agency downgraded the senior unsecured debt ratings of the company to B2 from Ba3 and the insurance financial strength ratings of six of the company's subsidiaries to Ba1 from Baa3.

The subsidiaries are Molina Healthcare of California, Molina Healthcare of Michigan Inc., Molina Healthcare of New Mexico Inc., Molina Healthcare of Ohio Inc., Molina Healthcare of Texas Inc. and Molina Healthcare of Washington Inc.

Moody's outlook on the company and its subsidiaries remains negative.

The agency's downgrade with a continued negative outlook on Molina and its rated operating subsidiaries reflects the company's constrained financial flexibility as well as uncertainty regarding the execution of its restructuring and profit improvement plan, Moody's said.

On Aug. 2, the company reported it was withdrawing its full-year guidance for 2017 and announced a company-wide restructuring following a second-quarter adjusted net loss of $225 million. Its shares plummeted almost 11% in the same week.

To help fund its restructuring plan, the company indicated that it intends to draw down $300 million on its revolving credit facility, which would increase leverage to nearly 63% on a pro forma basis, Moody's wrote. Given the broad scope of its remediation efforts, however, the rating agency views Molina's success as "uncertain."

However, the rating agency wrote that it would affirm its ratings with a stable outlook if the company successfully implements its restructuring plan as measured through improved operating margins, remediates its material weakness and maintains stable earnings including marketplace results.