Elevance Health, Inc. announced on October 24, 2024, the issuance of $5.2 billion in new senior unsecured bonds across six tranches with maturities ranging from 2026 to 2064. The proceeds from this debt issuance are intended for general corporate purposes, including the repayment of upcoming debt maturities.
AM Best assigned a Long-Term Issue Credit Rating of 'bbb+' (Good) with a stable outlook to these newly issued bonds. The rating agency noted that financial leverage, as measured by AM Best, rose to approximately 42% at the end of third-quarter 2024, including this issuance.
AM Best expects financial leverage to moderate after the repayment of approximately $850 million in notes due in late 2024 and $1.25 billion due in January 2025, returning to the 40% range by the end of 2025. This financing move supports the company's financial flexibility and liquidity.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.