S&P rates Anthem notes A

S&P said it assigned an A debt rating to Anthem Inc.'s proposed senior unsecured notes due in 2020, 2022, 2024, 2027 and 2047.

The agency said it expects the issuance to increase leverage, but it does not affect the A long-term issuer credit rating.

The company said it will use the proceeds to finance its acquisitions of HealthSun Health Plans Inc. and America's 1st Choice, to prefund upcoming notes' maturity and for general corporate purposes.

“We expect Anthem's financial leverage to increase to around 45% by year-end 2017 from 39.6% as of year-end 2016 (on our basis), and for it to de-lever to around 40% over the next two years, which will be within our expectations for our rating,” S&P said in a news release.

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