Molina Healthcare Shares: Navigating a Deepening Crisis

The US healthcare provider finds itself confronting the most severe challenges in its recent history. A disastrous earnings forecast, a credit rating downgrade, and a surge of class-action lawsuits have investors questioning the company’s ability to stage a recovery.

Adding to the company’s woes, S&P Global has revised its rating outlook for Molina Healthcare from “stable” to “negative.” The agency expressed significant concern over the company’s substantial debt level, which stands at 48%, occurring alongside a multi-billion dollar share repurchase program. S&P warned that the firm’s capital adequacy could fall below critical thresholds by 2027. This pessimistic assessment from a major rating agency Read more...