S&P rates Cigna notes A-

S&P said it assigned its A- rating to Cigna Corp.'s planned issuance of three tranches, due 2030, 2040, and 2050, of senior unsecured notes. These notes will be senior unsecured obligations and rank equally with all of Cigna's senior unsecured and unsubordinated indebtedness. Also, these notes will be structurally subordinated to any indebtedness and other liabilities of the insurance operating subsidiaries.

“We view this senior note issuance as net neutral to Cigna's financial leverage (46% as of year-end 2019) since we expect the company to use most of the proceeds from this issuance to refinance future maturities,” said S&P in a press release.

Cigna intends to use the proceeds to redeem $1.55 billion of its upcoming 2021 maturities, tender for $500 million of 2022 maturities and tender for $950 million of its 2023 maturities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.