AM Best Assigns Issue Credit Ratings to Cigna Corporation’s New Senior Unsecured Notes
AM Best has issued Long-Term Issue Credit Ratings of “bbb” for various senior unsecured notes by Cigna Corporation, totaling $4.3 billion. The notes, due between 2024 and 2051, aim to redeem maturing debts and support general corporate purposes. Cigna's financial leverage stands at over 39%, with expectations to decrease to below 40% by year-end 2021 due to improved earnings and asset sales. The outlook remains stable, as existing ratings for Cigna and its subsidiaries are unchanged.
- Cigna's strong earnings from 2020 support financial deleveraging.
- Improved financial leverage expected post-redeeming maturing debt.
- Stable outlook on credit ratings reinforces investor confidence.
- Temporary increase in financial leverage following new debt issuance.
AM Best has assigned Long-Term Issue Credit Ratings of “bbb” to the
AM Best notes that Cigna has maintained relatively high financial leverage, which had come down to just over
AM Best expects Cigna’s financial deleveraging to be driven by the stronger earnings reported in 2020 and related dividends from Cigna’s insurance entities, solid nonregulated earnings from its Evernorth health services segment and additional one-time capital sources, such as a portion of the proceeds from the sale of its group employee benefits business - which closed at year-end 2020 - to help reduce outstanding debt.
This press release relates to Credit Ratings that have been published on AM Best’s 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 Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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FAQ
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