Standard & Poor's Ratings Services said its ratings on WellCare Health Plans Inc. were not affected by the health insurer's restatement of its results over the last four years.
On Monday, WellCare restated its results from 2004 through the first six months of 2007, which reduced its profit over that period by about $46.5 million. S&P kept a junk status "B" credit rating on WellCare, and has the stock on its CreditWatch list with negative implications.
Standard & Poor's does not have a short term rating on WellCare.
After an internal audit, WellCare concluded it owed the states of Florida and Illinois $46.5 million due to accounting errors. The company said it recorded insufficient liabilities for two programs in Florida and one in Illinois.
WellCare's Tampa, Fla., headquarters were raided on October by agents from the Federal Bureau of Investigation, the Department of Health and Human Services and the Medicare fraud division of the Florida Attorney General's office. The company is the target of government investigations as well as class-action and "whistleblower" lawsuits.
Standard & Poor's said the negative CreditWatch rating reflects uncertainty about the cost of resolving the investigation and suits.
WellCare stock rose $1.95, or 5.4 percent, to $38.15 in afternoon trading.
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