OLDWICK, N.J., May 22, 2024–(BUSINESS WIRE)–AM Best has issued a long-term issue credit rating of 'bbb+' (good) for Elevance Health, Inc. (Indianapolis, Indiana). assigned. ) New issuance of $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.
Proceeds from these issuances are expected to be used for general corporate purposes, including repayment of maturing outstanding debt and merger and acquisition activities. As of the first quarter of 2024, the company had approximately $1.4 billion in commercial paper outstanding and debt maturities totaling more than $26 billion. Financial leverage, as measured by AM Best, was just over 41%, as the bond issue increased the ratio. However, Elevance Health manages its financial leverage to his 40% on a long-term basis, with some fluctuations based on the timing of debt repayments and planned capital deployments such as acquisition activity. Additionally, Elevance Health has demonstrated consistent revenue and profit growth trends, strong interest coverage and operating cash flow. Moreover, unregulated cash flow is stable for the organization and supports the financial flexibility of 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 published on AM Best's website. Please see AM Best's Recent Rating Activity webpage for all rating information related to the release and related disclosures, including details of the office responsible for issuing the individual ratings referenced in this release. Please see Best's Credit Rating Guide for additional information regarding the uses and limitations of credit rating opinions. For information on the proper use of Best Credit Ratings, Best Performance Reviews, Best Preliminary Credit Ratings, and AM Best Press Releases, please see the Guide to Proper Use of Best Ratings and Reviews.
AM Best is a global credit rating agency, news publisher, and data analytics provider focused on the insurance industry. The company is headquartered in the United States, with offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City, and does business in more than 100 countries. For more information, please visit www.ambest.com.
Copyright © 2024 by AM Best Rating Services, Inc. and/or its affiliates. All rights reserved.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240522025227/en/
story continues
contact address
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 Zazella
director
+1 908 882 2442
joseph.zazzera@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
