A.M. Best Assigns Rating to CIGNA Corporation's Senior Unsecured Notes

Business Wire, March 5, 2008

OLDWICK, N.J. -- A.M. Best Co. has assigned a debt rating of "bbb" to $300 million 6.35% senior unsecured notes due 2018 of CIGNA Corporation (CIGNA) (Philadelphia, PA) (NYSE: CI). The rating outlook is stable.

The proceeds from the offering will be used to partially finance CIGNA's acquisition of Great-West Healthcare, which is expected to close in second quarter 2008.

This rating action reflects CIGNA's strength in operating performance, growth in healthcare membership and sizable market share relative to its peers. CIGNA's financial leverage is expected to increase above 30% with the Great-West Healthcare acquisition and settle below 30% by the end of 2008. With this debt issuance, the debt-to-capital level is expected to remain below 30%. Financial flexibility is adequate for the current rating including an appropriate level of debt and interest coverage, along with access to a $1.75 billion letter of credit. Interest coverage is expected to remain strong at greater than 10 times. Healthcare earnings have remained fairly stable and continue to contribute to a large portion of revenues and debt service for CIGNA. Specialty products also have provided CIGNA with good margins to support operational earnings growth.

Partially offsetting these positive rating factors are the business risks that may follow the pending acquisition of Great-West Healthcare; however these risks are associated with any acquisition. In addition, increased pricing pressure through industry consolidation and heightened competition in CIGNA's target membership markets may affect future company performance.

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.