Fitch rates Cigna notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Cigna Corp.’s planned issue of up to $900 million senior unsecured notes due 2025.

The rating is equivalent to the ratings on Cigna’s currently outstanding senior notes.

Cigna has an issuer default rating of A- and short-term issuer default rating of F2.

Cigna is expected to use issuance proceeds to redeem all outstanding $600 million 2.75% notes due in 2016 and $251 million 8.5% notes due in 2019, with any remaining proceeds used for general corporate purposes, Fitch said.

The ratings reflect expectations that the net effect of the planned issuance and redemptions will not materially change Cigna’s financial leverage and interest-coverage ratios from levels reported at year-end 2014, the agency said.

The ratings also consider the company’s large market position, solid profitability and well-capitalized operating subsidiaries, Fitch said.

Balanced against these strengths is the company’s high financial-leverage ratio, the agency said.

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