AM Best Assigns Issue Credit Ratings to Humana Inc.’s Senior Unsecured Notes

AM Best has assigned Long-Term Issue Credit Ratings (Long-Term IR) of bbb- to Humana Inc.s (Humana) (headquartered in Louisville, KY) [NYSE:HUM] recently announced $600 million 4.5% 5-year senior unsecured notes due 2025 and the $500 million 4.875% 10-year senior unsecured notes due 2030. The outlook assigned to these Credit Ratings (ratings) is positive. Humanas Long-Term Issuer Credit Rating of bbb-, its existing Long-Term IRs and the ratings of its insurance subsidiaries are unchanged.

With these issuances, Humanas financial leverage will increase to the 35-40% range. However, AM Best expects the leverage to return to closer to the 35% range in the near to medium term. Humana has strong interest coverage at over 10 times. Humana intends to use the proceeds for general corporate purposes, which may include the repayment of existing debt.

This press release relates to Credit Ratings that have been published on AM Bests website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Antonietta Iachetta

Senior Financial Analyst

+1 908 439 2200, ext. 5792

[email protected]

Sally Rosen

Senior Director

+1 908 439 2200, ext. 5280

[email protected]

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

[email protected]