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Fitch Places AMIL on Rating Watch Positive

RIO DE JANEIRO--(BUSINESS WIRE)-- Fitch Ratings has placed the following ratings of Amil Participacoes S.A.'s (AMIL) on Rating Watch Positive:

--National Scale Rating 'AA(bra)';

--BRL900 million debentures issuance due 2015 at 'AA(bra)';

--BRL300 million debentures issuance due 2014 at 'AA(bra)'.

This rating action follows the recent announcement that AMIL and UnitedHealth Group Inc. (UnitedHealth), the largest health benefits and services company in the United States, concluded an association agreement, upon the acquisition by UnitedHealth of up to 90% of AMIL's total capital for about USD4.9 billion. The transaction is subject to regulatory approval, as well as minority shareholders approval.

The Positive Rating Watch reflects positive expectations about the likely benefits for AMIL's business and financial profile regarding the stronger financial support, valuable business expertise and access to modern technology through the new shareholder, UnitedHealth, rated by Fitch with Issuer Default Rating (IDR) at 'A' and Insurer Financial Strength (IFS) ratings at 'AA-'.

Fitch expects to solve the Watch Positive as soon as the transaction is approved. Following completion, under the current terms, AMIL's ratings should move to the highest national scale rating. Fitch believes that the support of the U.S. company will probably lower AMIL's cost of funding and, also, strengthen its ability in continuing with its acquisition' strategy in the country and abroad. Until now, AMIL has operated its businesses under profitable basis and a solid capital structure.

AMIL's ratings reflect the company's efficient track record in managing its business, its success in integrating acquired companies and its conservative financial profile management. The ratings also consider the leadership of AMIL in the Brazilian market, its solid reputation, a long history of low medical loss ratios, and wide coverage of market segments enabled by its network of service providers and their product mix, which provides the company with competitive advantages over their peers in the industry.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' (Aug. 8, 2012);

--'National Ratings - Methodology Update' (Jan. 19, 2011).

Applicable Criteria and Related Research:

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684460

National Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=595885

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Fitch Ratings
Primary Analyst
Debora Jalles, +55-21-4503-2629
Director
Fitch Ratings Brasil Ltda.
Praca XV de Novembro, 20 - Sala 401 B - Centro - Rio de Janeiro - RJ - CEP: 20010-010
or
Secondary Analyst
Renata Pinho, +55-11-4504-2207
Director
or
Committee Chairperson
Dan Kastholm, CFA, +1 312-368-2070
Managing Director
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
Email: elizabeth.fogerty@fitchratings.com

Source: Fitch Ratings