AM Best Assigns Issue Credit Ratings to Elevance Health, Inc.’s New Senior Unsecured Notes

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.

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