Moody’s rates WellPoint debt Baa2

Moody's Investors Service said it assigned a Baa2 senior unsecured debt rating to WellPoint, Inc.'s issuance of new long-term debt.

The outlook is stable.

WellPoint expects to use the net proceeds to refinance existing debt including senior notes maturing in December 2014 as well as for general corporate purposes.

The $2.7 billion debt issuance, comprised of $850 million of five-year maturities, $800 million of 10-year maturities, $800 million of 30-year maturities and $250 million of 40-year maturities is a draw on the company's shelf registration, which it filed in December 2011.

Moody's noted that while WellPoint's unadjusted financial leverage ratio (debt to capital), which was about 37.8% as of June 30, will increase above 40% in the short-term, the ratio is expected to return and remain below the 40% level by year-end, which is Moody's expectation for the company's current rating level. WellPoint's adjusted financial leverage ratio (debt to capital where debt includes pension obligations and operating leases) is also expected to be below the 40% level at Dec. 31, 2014, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.