The outlook for the U.S. health insurance and managed care sectors remains stable, Fitch Ratings announced.
Over the next 12 to 24 months, Fitch expects the sector's earnings and interest coverage to remain strong and balance sheet and liquidity metrics to approximate current levels. As a result, most health insurance and managed care companies' ratings are likely to be affirmed over that time.
Fitch expects the sector to continue to generate strong absolute earnings and EBITDA-based interest coverage. Margins are likely to remain solid but decline somewhat as insurers are challenged to wring costs out of the health care system given pressure on premium rates and low interest rates.
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