S&P Places Catamaran (CTRX) on CreditWatch Positive Following United HealthCare Deal

Standard & Poor's Ratings Services today placed all of its ratings, including the 'BB+' corporate credit rating, on Catamaran (Nasdaq: CTRX) on CreditWatch with positive implications.

"The CreditWatch placement follows United HealthCare Insurance Co.'s announcement that it intends to acquire Catamaran in a $12.8 billion deal funded by a mix of cash and new debt," said Standard & Poor's credit analyst Shannan Murphy. Pro forma the acquisition and the combination of Catamaran with UHC's captive pharmacy benefit manager, Optum Rx, the combined entity will be the third-largest U.S. pharmacy benefit manager, behind CVS/Caremark and Express Scripts.

Earlier today, we affirmed our 'A+' rating on United HealthCare and revised the rating outlook to negative from stable on news of the acquisition (See "UnitedHealth Group Inc. And Subsidiaries Outlooks Revised To Negative From Stable; Ratings Affirmed," published earlier today).

We will resolve our CreditWatch listing on Catamaran when the acquisition closes, pending additional information on UHC's acquisition integration plans and on the ultimate capital structure of the combined entity.

Key points:

• Illinois-based pharmacy benefit manager Catamaran Corp. is being acquired by U.S. health insurance company United HealthCare Insurance Co. (A+/Negative/A-1) in a deal valued at $12.8 billion.
• We are placing all of our ratings on Catamaran on CreditWatch with positive implications, including the 'BB+' corporate credit rating, reflecting the potential for higher issue-level ratings if the transaction is consummated as planned.
• We will resolve our CreditWatch listing when more information regarding the final debt structure is available and we have further information to determine how Catamaran would fit into United HealthCare according to our Group Methodology criteria.

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