Moody’s Looking at Downgrading Aetna’s Credit Rating

Moody’s Ratings is reviewing whether to downgrade Aetna Inc.’s credit rating as costs stemming from its Medicare Advantage business rise, pressuring future earnings.

Aetna, an operating subsidiary of CVS Health Corp., no longer issues debt, but still has outstanding bonds, according to a Thursday report from Moody’s. Its unsecured rating stands at Baa2, two rungs above speculative-grade. CVS was also placed on a review for downgrade earlier this week.

Moody’s expects the insurer’s adjusted gross debt-to-EBITDA ratio, a measure of its debt burden, to reach about 5 times by the end of the year, compared to a previous ...