AM Best Assigns Issue Credit Ratings to Humana Inc.’s Senior Unsecured Notes
August 09 2019 - 1:10PM
Business Wire
AM Best has assigned the Long-Term Issue Credit Ratings
(Long-Term IR) of “bbb-” to Humana Inc.’s (Humana) (headquartered
in Louisville, KY) [NYSE:HUM] recently announced $500 million
3.125% 10-year senior unsecured notes due 2029 and the $500 million
3.95% 30-year senior unsecured notes due 2049. The outlooks
assigned to these Credit Ratings (ratings) are positive. AM Best
expects Humana to use the proceeds from this offering to retire its
forthcoming debt obligations due in 2019. Humana’s Long-Term Issuer
Credit Rating of “bbb-”, its existing Long-Term IRs and the ratings
of its insurance subsidiaries are unchanged.
AM Best expects Humana’s financial leverage to increase
temporarily with the new issuance, but return to a range at or
below 35% once the upcoming debts have matured. Interest coverage
is expected to remain strong at over 10 times.
The positive outlook on the Long-Term IRs is reflective of the
outlook change to Humana Inc. and the majority of its subsidiaries.
Please refer to the July 10, 2019 press release for details.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media use of
Best’s Credit Ratings and AM Best press releases, please view Guide
for Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider
with a unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Wayne Kaminski Senior Financial Analyst +1 908
439 2200, ext. 5061 wayne.kaminski@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Sally Rosen Senior Director +1 908 439 2200,
ext. 5280 sally.rosen@ambest.com
Jim Peavy Director, Public Relations +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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