Moody’s gives Baa2 to Anthem debt

Moody's Investors Service said it assigned a Baa2 senior unsecured debt rating to Anthem, Inc.'s (senior debt at Baa2) planned issuance of senior unsecured debt due in 2028 and 2048.

Net proceeds will be used for working capital and for general corporate purposes, including, but not limited to, repayment of short-term and long-term debt, to fund acquisitions and the repurchase of the company's common stock pursuant to its share repurchase program.

The notes are being issued under Anthem's shelf registration filed in November 2017.

The outlook is stable.

Moody's said the Baa2 senior unsecured debt rating – and the A2 insurance financial strength ratings of Anthem Insurance Cos., Inc. (AICI) and five other rated health insurance operating subsidiaries – are based on the company's strong business profile as the second-largest health benefits company in the U.S. (based on medical membership) driven by its national presence, the Blue Cross and Blue Shield (BCBS) brand name, a balanced mix of business by segment and between full-risk and self-insured, and the group's leading market position in most of the states in which it operates.

The ratings are also supported by a solid financial profile characterized by its consistent earnings performance, the agency explained.

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