Cigna 2008 Annual Report Download - page 49

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29
Debt ratings are assessments of the likelihood that a company will make timely payments of principal and interest. The principal
agencies that rate CIGNA’s senior debt characterize their rating scales as follows:
• Moody’s, Aaa to C (“Exceptional” to “Lowest”);
• S&P, AAA to D (“Extremely Strong” to “Default”); and
• Fitch, AAA to D (“Highest” to “Default”).
The commercial paper rating scales for those agencies are as follows:
• Moody’s, Prime-1 to Not Prime (“Superior” to “Not Prime”);
• S&P, A-1+ to D (“Extremely Strong” to “Default”); and
• Fitch, F-1+ to D (“Very Strong” to “Distressed”).
As of February 25, 2009, the debt ratings assigned to CIGNA Corporation by the following agencies were as follows:
Debt Ratings(1)
CIGNA CORPORATION
Commercial
Senior Debt Paper
Moody’s................................................................................. Baa2 P2
(“Adequate,” (“Strong,”
9
th of 21) 2nd of 4)
S&P........................................................................................ BBB+ A2
(“Adequate,” (“Good,”
8
th of 22) 3rd of 7)
Fitch ....................................................................................... BBB+ F2
(“Good,”
8th of 24)
(“Moderately
Strong,”
3rd of 7)
________________________
(1) Includes the rating assigned, the agency’s characterization of the rating and the position of the rating in the applicable agency’s rating scale.
CIGNA is committed to maintaining appropriate levels of capital in its subsidiaries to support financial strength ratings that meet
customers’ expectations, and to improving the earnings of the health care business. Lower ratings at the parent company level increase
the cost to borrow funds. Lower ratings of CG Life and LINA could adversely affect new sales and retention of current business.