Rating reaffirmed

International credit rating agency Global Credit Ratings (GCR) has reaffirmed the Discovery Health Medical Scheme (DHMS) domestic claims paying ability rating of AA- (double A minus).

This is defined as having a very high certainty of timely payment and is the highest rating attainable in the South African Medical Scheme sector. In addition, GCR has placed DHMS’s rating on a positive outlook.

DHMS displays the largest risk pool in the open medical schemes industry, providing cover for more than 1.5 million lives.

According to Marc Joffe, a senior snalyst at GCR, cognisance was taken of the favourable age profile and well diversified membership base.

Furthermore, the substantial increase in reserves and solvency, coupled with an increase in liquidity was positively considered.

Joffe also stated that cognisance was taken of DHMS’s continued positive performance for the 2004 year to date, which has served to further improve solvency and increase the probability of complying with the 25% statutory solvency requirement by the end of 2004 and going forward.