OLDWICK, N.J.--(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.
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