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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 29, 2016 05:05 PM (EST)
A.M. Best has downgraded the financial strength rating (FSR) to E (Under Regulatory Supervision) from B+ (Good) and the issuer credit rating (ICR) to “e” from “bbb-” for Moda Health Plan, Inc. (Moda Health). Additionally, A.M. Best has downgraded the FSR to B (Fair) from B+ (Good) and the ICR to “bb+” from “bbb-” for Oregon Dental Service (ODS) and its subsidiaries: Northwest Dentists Insurance Company (NORDIC) and Dentists Benefits Insurance Company (DBIC). Furthermore, all ratings except for Moda Health have been placed under review with negative implications. All companies are domiciled in Portland, OR, with the exception of NORDIC, which is domiciled in Bothell, WA.
The rating actions taken on Moda Health reflect the actions taken by the Oregon Department of Consumer and Business Services, Division of Financial Regulation and Alaska Division of Insurance on Jan. 28, 2016. The Oregon Department of Consumer and Business Services, Division of Financial Regulation issued an order of supervision to Moda Health over concerns regarding its financial position. Furthermore, an order of Determination of Impairment was issued by the Alaska Division of Insurance.
The rating downgrades and under review status for ODS, NORDIC and DBIC reflect the strain on the organization due to Moda Health’s financial condition and the potential impact to the other rated entities.
The ratings of ODS, NORDIC and DBIC will remain under review pending a thorough analysis by A.M. Best of management’s plans to take Moda Health out from regulatory supervision.
This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.