S&P assigns Molina notes BB-

S&P said it assigned its BB- debt rating to Molina Healthcare Inc.'s $750 million of 10-year senior unsecured notes.

Molina will use the proceeds to redeem its $700 million of 5 3/8% senior unsecured notes due 2022, add cash to balance sheet and pay related fees and expenses.

“This issuance does not affect our BB- issuer credit rating on Molina. Molina's debt issuance will be essentially leverage neutral. As of the third quarter, Molina's financial leverage was 49% (including our operating lease adjustments and no parent cash credit). We forecast financial leverage will remain at the high end of 45%-50% at year-end 2021 before decreasing through earnings growth to about 45% in 2022,” the agency said in a press release.

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