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AM Greatest Assigns Problem Credit score Ranking to Humana Inc.’s Senior Unsecured Notes


Greatest’s Information & Analysis Service – March 24, 2022 10:06 AM (EDT)

  • March 24, 2022 10:06 AM (EDT)

Oldwick //BestWire// – AM Greatest has assigned a Lengthy-Time period Problem Credit score Ranking (Lengthy-Time period IR) of “bbb-” (Good) to Humana Inc.’s (Humana) (headquartered in Louisville, KY) [NYSE:HUM] lately introduced $750 million of three.70% senior unsecured notes due 2029. The outlook assigned to the Credit score Ranking (ranking) is secure. Humana’s Lengthy-Time period Issuer Credit score Ranking of “bbb-” (Good), its present Lengthy-Time period IRs and the scores of its insurance coverage subsidiaries are unchanged.

It’s anticipated that the proceeds of this subject can be used for normal company functions together with debt maturities and compensation of excellent short-term borrowings. Consequently, AM Greatest expects that this subject can be impartial to Humana’s monetary leverage. Monetary leverage stays elevated at roughly 44%, as measured by AM Greatest, at year-end 2021 because of debt issuances in 2021 to finance the acquisition of Kindred at Residence. On a long-term foundation, Humana targets a extra conservative debt-to-capital ratio of 35%. Humana introduced plans to deleverage by divesting of Kindred at Residence’s hospice and particular person care companies enterprise through an preliminary public providing (IPO) after shut of the transaction, which was accomplished in August 2021. This has not occurred so far and absent the IPO, monetary leverage will decline solely by way of fairness progress or retirement of debt. Nonetheless, Humana’s monetary flexibly stays good with holding firm money and subsidiary dividend capability, in addition to its business paper program and revolving credit score services totaling $4 billion. Moreover, working money circulation stays superb at $2.3 billion in 2021. Humana’s working outcomes have been favorable with materials progress of premium and repair revenues with pretty constant working margins and powerful return-on-equity metrics. Protection stays robust within the low double digits.

This press launch pertains to Credit score Scores which have been revealed on AM Greatest’s web site. For all ranking data referring to the discharge and pertinent disclosures, together with particulars of the workplace answerable for issuing every of the person scores referenced on this launch, please see AM Greatest’s Latest Ranking Exercise net web page. For extra data concerning the use and limitations of Credit score Ranking opinions, please view Information to Greatest’s Credit score Scores. For data on the right use of Greatest’s Credit score Scores, Greatest’s Efficiency Assessments, Greatest’s Preliminary Credit score Assessments and AM Greatest press releases, please view Information to Correct Use of Greatest’s Scores & Assessments.

AM Greatest is a world credit standing company, information writer and information analytics supplier specializing within the insurance coverage trade. Headquartered in the US, the corporate does enterprise in over 100 nations with regional places of work in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico Metropolis.

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