AM Best withdraws credit ratings on Moda Health Plan, Inc.  and Oregon Dental Service

AM Best withdraws credit ratings on Moda Health Plan, Inc. and Oregon Dental Service

ALDUICK, NJ March 15, 2024—(BUSINESS WIRE)–AM Best downgraded the Long-Term ICR to “bb” (Fair) from “bb+” (Fair) and affirmed the Financial Strength Rating (FSR) from B (Fair) of Moda Health Plan, Inc. (Moda Health). Simultaneously, AM Best downgraded Oregon Dental Service’s (ODS) FSR to B (satisfactory) from B+ (good) and long-term ICR to ‘bb+’ (satisfactory) from ‘bbb-‘ (good). In addition, AM Best has placed both ratings on review with negative implications. Both companies are based in Portland, Oregon.

In addition, AM Best withdrew these ratings because the companies requested to no longer participate in AM Best’s interactive rating process. These ratings serve as the final AM Best rating updates for these companies.

The ratings reflect Moda Health’s strong balance sheet, which AM Best rates as weak, as well as its marginal operating results, limited business profile and adequate enterprise risk management (ERM).

Prior to the withdrawals, Moda Health’s negatively impacted and downgraded long-term ICR reflected the lack of improvement in its risk-adjusted capitalization as measured by Best’s capital adequacy ratio (BCAR). In 2023, the company’s capital decreased due to a significant net loss and repayment of surplus bonds, partially offset by an unrealized profit and a capital contribution from its parent company ODS. AM Best remains concerned about the level of risk-adjusted capitalization.

The ratings reflect ODS’s balance sheet strength, which AM Best judges to be sufficient, as well as its adequate operating results, limited business profile and appropriate ERM.

Downgrades and downgrades of ODS mainly reflect reduced risk-adjusted capitalization as measured by BCAR. In addition, financial leverage for ODS remains moderately high, which AM Best believes limits financial flexibility.

This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and relevant disclosures, including details of the agency responsible for issuing each of the individual ratings set out in this release, please see AM Best’s Recent assessment activity Web page. For additional information on the use and limitations of credit score opinions, please see Guide to Best Credit Ratings. For information on the proper use of Best’s credit ratings, Best’s performance ratings, Best’s preliminary credit ratings, and AM Best’s press releases, see A guide to the proper use of Best’s ratings and reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit

Copyright © 2024 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Geoffrey Lane
Senior Financial Analyst
+1 908 882 1994
[email protected]

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]

Bridget Mayer
+1 908 882 2080
[email protected]

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]

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