A.M. Best Assigns Issue Credit Ratings to Cigna Corporation’s New Senior Unsecured Notes
September 08 2017 - 3:06PM
Business Wire
A.M. Best has assigned Long-Term Issue Credit Ratings
(Long-Term IRs) of “bbb” to the $600 million 3.050% senior
unsecured notes due 2027 and the $1 billion 3.875% senior unsecured
notes due 2047 that were recently issued by Cigna
Corporation (Cigna) (headquartered in Bloomfield, CT)
[NYSE:CI]. Furthermore, A.M. Best has assigned indicative Long-Term
IRs of “bbb” to senior unsecured debt, “bbb-” to subordinated debt,
“bb+” to junior subordinated debt and “bb+” to preferred shares of
the shelf registration filed in August. The outlook assigned to
these Credit Ratings (ratings) is stable. The existing ratings of
Cigna and its subsidiaries are unchanged.
Cigna intends to use the proceeds from this $1.6 billion bond
offering for its previously announced cash tender offer for up to
$1 billion for its 8.300% notes due 2023, 7.65% notes due 2023,
7.875% debentures due 2027, 8.300% step down notes due 2033, 6.150%
notes due 2036, 5.875% notes due 2041 and 5.375% notes due 2042,
with any remaining proceeds to be used for general corporate
purposes. A.M. Best expects Cigna’s debt-to-capital ratio to remain
below 30%, which is lower than many of its peers. Interest coverage
is expected to remain strong at over 10 times.
Cigna has a good level of financial flexibility, which is
supported by its commercial paper program, parent company cash, a
line of credit agreement and a steady stream of subsidiary
dividends from its subsidiaries and non-regulated entities. The
company’s projected net income is expected to remain strong with
its health, life and disability insurance operations reporting
consistent revenue growth and earnings.
This press release relates to Credit Ratings that have been
published on A.M. 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 A.M.
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 A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170908005834/en/
A.M. BestSaurin Parikh, +1 908 439 2200, ext.
5030Financial
Analystsaurin.parikh@ambest.comorSally Rosen, +1 908
439 2200, ext. 5280Senior
Directorsally.rosen@ambest.comorChristopher Sharkey,
+1 908 439 2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
+1 908 439 2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
Cigna (NYSE:CI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cigna (NYSE:CI)
Historical Stock Chart
From Apr 2023 to Apr 2024