AM Best Assigns Indicative Issue Credit Ratings to Humana Inc.’s New Shelf Registration
18 March 2021 - 6:51AM
Business Wire
AM Best has assigned indicative Long-Term Issue Credit
Ratings of “bbb-” to senior unsecured issues, “bb+” to subordinated
issues and “bb” to preferred stock to the recently filed shelf
registration of Humana Inc. (Humana) (headquartered in Louisville,
KY) [NYSE: HUM]. The outlook assigned to these Credit Ratings
(ratings) is positive. Concurrently, AM Best has withdrawn the
ratings on the previous shelf registration. The existing ratings of
Humana and its insurance subsidiaries are unchanged.
Financial leverage, as calculated by AM Best, was at 33.3% at
year-end 2020, within Humana’s targets. The leverage had increased
in the first quarter 2020 following Humana’s issuance of $1.1
billion of debt, which had increased financial leverage temporarily
to 39.2%. Earnings before interest and taxes interest coverage is
strong at approximately 17 times earnings at year-end 2020. AM Best
expects Humana’s coverage ratio to remain in a range above 10 times
earnings in the near term. Additionally, 2020 net operating
earnings results were very strong, reflecting strengthening
Medicare Advantage membership gains in Humana’s core business.
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 media use of Best’s
Credit Ratings and AM Best press releases, please view Guide for
Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
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.
Copyright © 2021 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Antonietta Iachetta Senior Financial Analyst +1
908 439 2200, ext. 5792 antonietta.iachetta@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Sally Rosen Senior Director +1 908 439 2200,
ext. 5280 sally.rosen@ambest.com
Jim Peavy Director, Communications +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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