First Health Gets BBB- From S&P

Standard and Poor's said today it assigned its triple-'B'-minus counterparty credit rating to managed care company First Health Group Corp. because of its strong operating performance, excellent cash flow, and fixed-charges coverage ratio of 15 times, offset by weakness in its balance sheet, high debt levels, and low tangible net equity. It also said the outlook for First Health was stable. Debt as of year-end 2001 was $197.5 million (37% debt-to-total capital). First Health's debt could spike to 50% in the next 2-3 years, based on the company's expected bank credit line to be secured in 200...