AM Best Assigns Issue Credit Ratings to Elevance Health, Inc.’s New Senior Unsecured Notes
May 22 2024 - 10:15AM
Business Wire
AM Best has assigned the Long-Term Issue Credit Ratings
of “bbb+” (Good) to Elevance Health, Inc.’s (Elevance Health)
(Indianapolis, IN) newly issued $600 million, 5.15% senior
unsecured notes, due 2029; $1 billion, 5.375% senior unsecured
notes, due 2034 and $1 billion, 5.65% senior unsecured notes, due
2054. The outlook assigned to these Credit Ratings (ratings) is
stable.
The proceeds from these issues are expected to be used for
general corporate purposes, including repayment of outstanding
upcoming debt maturities and merger and acquisition activities. At
first quarter 2024, the company had approximately $1.4 billion of
commercial paper outstanding and debt maturities that totaled over
$26 billion. Financial leverage as measured by AM Best was slightly
over 41% as the debt issuances increased the ratio. However,
Elevance Health manages its financial leverage to 40% on a
long-term basis with some variation based on timing of debt
repayment, and planned capital deployment, such as acquisition
activity. Furthermore, Elevance Health has demonstrated strong
interest coverage and operating cash flows, with a consistent
growth trend in revenues and earnings. Additionally, non-regulated
cash flows are solid for the organization and support the financial
flexibility for the organization. Financial flexibility and
liquidity are also supported by the organization’s commercial paper
program, revolving credit facility, parent company cash and
dividends from its regulated insurance subsidiaries.
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 Guide to Best's
Credit Ratings. For information on the proper use of Best’s Credit
Ratings, Best’s Performance Assessments, Best’s Preliminary Credit
Assessments and AM Best press releases, please view Guide to Proper
Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Jennifer Asamoah Senior Financial Analyst +1
908 882 1637 jennifer.asamoah@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Joseph Zazzera Director +1 908 882 2442
joseph.zazzera@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com