AM Best Places Credit Ratings of Oregon Dental Services and Moda Health Plan, Inc. Under Review with Developing Implications

OLDWICK, N.J.–(BUSINESS WIRE)–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
.

AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

Contacts

Wayne Kaminski
Senior Financial Analyst
+1
908 439 2200, ext. 5061

wayne.kaminski@ambest.com

Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Sally Rosen
Senior Director
+1 908 439 2200,
ext. 5280

sally.rosen@ambest.com

Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644

james.peavy@ambest.com