Press Release - SEPTEMBER 05, 2019
AM Best Assigns Issue Credit Rating to Anthem, Inc.’s Senior Unsecured Notes
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 05, 2019
Proceeds of these notes issuances are expected to be used for general corporate purposes, including refinancing/repurchasing of debt and funding M&A.
AM Best expects that the issuance will not have a major impact on financial leverage for Anthem and will modestly increase the total amount of debt outstanding. Anthem’s financial leverage, as calculated by AM Best, was approximately 39% and interest coverage is good at over eight times and has improved through June 30, 2019. Based on discussions with management, financial leverage is expected to continue to moderate somewhat over time, through the elimination of existing debt and an increase in equity through retained earnings.
Anthem maintains very good liquidity through favorable cash flows from its various operating subsidiaries. Additional sources of contingent liquidity for the organization are Anthem’s cash and investments and $3.5 billion available under its long- and short-term credit facilities. Capitalization levels and operating results at its regulated entities continue to be strong. Anthem has reported strong operating results in 2018 and through second quarter 2019, and maintains a leading market share across many of its Blue Cross Blue Shield states.
AM Best has assigned the following Long-Term IRs with a stable outlook:
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 Understanding 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.
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