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AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” (Good) to Anthem Inc.’s (Anthem) (Indianapolis, IN) newly issued $600 million 4.1 % senior unsecured notes due 2032 and $700 million 4.55% senior unsecured notes due 2052. The outlook assigned to these Credit Ratings (ratings) is stable.
The proceeds are expected to be utilized for general corporate purposes, including repayment of an upcoming debt maturity of $850 million 3.125% senior unsecured notes due in May 2022.
The new issuance will increase Anthem’s financial leverage to slightly above 40%, compared with approximately 39% at year-end 2021. The company’s interest coverage remains good at over nine times. Anthem’s management expects its financial leverage to moderate slightly by year-end 2022 and remain within the target of 40%. Anthem continues to maintain strong liquidity through subsidiary dividends and access to a $4 billion revolving credit facility and a $3.5 …
Full story available on Benzinga.com
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