Business

AM Best Assigns Issue Credit Rating to Humana Inc.’s New Junior Subordinated Notes

OLDWICK, N.J., March 06, 2026--AM Best has assigned a Long-Term Issue Credit Rating of "bbb-" (Good) to the $1 billion, 6.625% fixed rate junior subordinated notes, due 2056, of Humana Inc. (Humana) (headquartered in Louisville, KY) [NYSE: HUM]. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Humana and its subsidiaries remain unchanged.

articleHumana Inc.March 6, 20263/company/humana-inc/news/am-best-assigns-issue-credit-rating-to-humana-incs-new-junior-subordinated-notes-31
AM Best Assigns Issue Credit Rating to Humana Inc.’s New Junior Subordinated Notes

About this update from Humana Inc.

[{"type":"image","alt":"","displaySize":"","headline":null,"caption":"","credit":null,"className":"","disableSlideshowImg":false,"size":{"original":{"width":2222,"height":1080,"url":"https://media.zenfs.com/en/business-wire.com/eaca278f82748825fd5332da8e8e3cee"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/ZxHf4HVSGWMdEjKJWBkOjw--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTQ2NztjZj13ZWJw/https://media.zenfs.com/en/business-wire.com/eaca278f82748825fd5332da8e8e3cee","width":960,"height":467},"lightbox":{"url":"https://s.yimg.com/ny/api/res/1.2/D4B_jOz7RxuyLyOlTyRiGA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTI0MDA7aD0xMTY2O2NmPXdlYnA-/https://media.zenfs.com/en/business-wire.com/eaca278f82748825fd5332da8e8e3cee","width":1200,"height":583}},"lazy":false},{"type":"text","content":"OLDWICK, N.J., March 06, 2026--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of "bbb-" (Good) to the $1 billion, 6.625% fixed rate junior subordinated notes, due 2056, of Humana Inc. (Humana) (headquartered in Louisville, KY) [NYSE: HUM]. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Humana and its subsidiaries remain unchanged.","length":402,"tagName":"p"},{"type":"text","content":"Humana expects to use the proceeds from the junior subordinated notes issuance for general corporate purposes, which may include repayment of existing indebtedness, including borrowings under its commercial paper program. AM Best expects the issuance to increase financial leverage slightly in the intermediate term. The company’s financial leverage, as measured by AM Best, will increase slightly from year-end 2025 to approximately 41.8% with the new issuance. Financial leverage has exceeded the organization's long-term target debt-to-capital ratio of 40%, but management expects to manage to this target through increases in equity and continued deleveraging over the course of the year.","length":696,"tagName":"p"},{"type":"text","content":"Humana’s earnings before interest and taxes (EBIT) interest coverage remains solid at 4-8 times in recent years; however, it has dropped off from the double-digit range a few years ago due to a decline in operating results, driven by increased utilization and changes in reimbursement in its Medicare Advantage segment in the last few years, as well as higher interest expenses.","length":378,"tagName":"p"},{"type"...

More updates from Humana Inc.

Credit RatingHumana Inc.Medicare Advantagefinancial leveragecommercial paper program