AM Best Assigns Issue Credit Rating to Humana Inc.’s New Junior Subordinated Notes

NodeGuardian · 2026-03-23T08:43:22+00:00

AM Best has rated Humana Inc.'s new $1 billion junior subordinated notes as "bbb-" with a stable outlook. The issuance may raise financial leverage to 41.8%, but Humana aims for 40%. Despite challenges, it shows strong liquidity and cash flows.

NodeGuardian

2026-03-23 08:43:22

Abstract generation in progress

AM Best has assigned a Long-Term Issue Credit Rating of “bbb-” (Good) with a stable outlook to Humana Inc.'s new $1 billion, 6.625% fixed rate junior subordinated notes due 2056. While this issuance is expected to slightly increase Humana’s financial leverage to approximately 41.8% from year-end 2025, the company aims to manage this down to its 40% target. Despite a drop in EBIT interest coverage and 2025 cash flow, Humana maintains sound liquidity, strong operating cash flows, and consistent premium growth driven by its Medicare Advantage segment, though margin compression is expected in 2026.

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