Best’s News & Research Service - February 08, 2019 12:48 PM (EST)
AM Best Places Credit Ratings of Oregon Dental Services and Moda Health Plan, Inc. Under Review With Developing Implications
- February 08, 2019 12:48 PM (EST)
Oldwick //BestWire// - AM Best has placed under review with developing implications the Financial Strength Rating (FSR) of B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bb” of Oregon Dental Services (ODS). Concurrently, AM Best has placed under review with developing implications the FSR of B- (Fair) and the Long-Term ICR of “bb-” of Moda Health Plan, Inc. (Moda Health). Both companies are domiciled in Portland, OR.
These credit rating actions follow a January 2019 release by the California Department of Managed Health Care (DMHC) that it is reviewing Delta Dental of California’s plan to purchase approximately 50% interest in Moda Inc., a subsidiary of ODS and the parent of Moda Health. The DMHC has stated that there is no time limit for the review, which is ongoing. Furthermore, these credit rating actions are based on the uncertain timing of a decision by the DMHC, as well as AM Best’s expectation that the transaction would have been completed by year-end 2018. The ratings will remain under review until the transaction concludes, at which time AM Best will conduct discussions with management regarding the final terms of the transaction and its impact on capitalization and flow of funds.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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