S&P assigns Humana notes BBB+

S&P said it assigned its BBB+ debt rating to Humana Inc.’s proposed fixed-rate senior notes with various maturities.

The agency said it expects Humana to use the proceeds for general corporate purposes, which may include repayment of obligations scheduled to mature in 2020 and adding to balance sheet liquidity.

“We expect financial leverage to be 35%-40% (pro forma, on our adjusted basis), which is commensurate with our 2020-2021 run-rate expectations. We also expect EBITDA interest coverage of 10x-15x for the same period,” S&P said in a press release.

The transaction does not affect the company’s BBB+ long-term issuer credit rating or stable outlook.

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