AM Best Assigns Issue Credit Ratings to UnitedHealth Group Incorporated Senior Unsecured Notes

OLDWICK, NJ–(BUSINESS WIRE)–AM Best has assigned long-term credit ratings (long-term IR) of “a” (Excellent) to UnitedHealth Group Incorporated (UnitedHealth Group) (Minnetonka, MN) [NYSE: UNH] recently issued $600 million of 3.7% senior unsecured notes due 2027; $900 million of 4% senior unsecured notes due 2029; $1.5 billion of 4.2% senior unsecured notes, due 2032; $2 billion of 4.75% senior unsecured notes, due 2052; and $1.0 billion 4.95% senior unsecured notes due 2062. The outlook assigned to these credit ratings (ratings) is stable. UnitedHealth Group’s long-term issuer credit rating of “a” (Excellent), its long-term IR and the ratings of its insurance subsidiaries are unchanged.

Proceeds from this issuance are expected to be used to repay outstanding commercial paper, $1 billion of 3.35% senior unsecured notes due July 2022 and $900 million of 2.375% senior unsecured notes. % due October 2022, as well as for other general corporate purposes. UnitedHealth Group had $3.2 billion of commercial paper outstanding as of March 31, 2022. Following the repayment of the commercial paper and upcoming maturities, AM Best expects the issuance to be neutral to the adjusted leverage ratio of the group, which measured 36.2% as of March 31. , 2022.

UnitedHealth Group has managed its leverage within a 40% range over the long term, with fluctuations following major acquisitions. AM Best expects the group’s adjusted financial leverage to remain below 40% at the end of 2022, following the completion of the two pending acquisitions, Change Healthcare and LHC Group Inc. The organization maintains a strong earnings before interest and taxes. two-digit digits. UnitedHealth Group has excellent liquidity thanks to parent company treasury, insurance subsidiary’s dividend capacity, unregulated cash flow, commercial paper program and $15 billion revolving credit facility of dollars. A steady stream of revenue development and earnings growth has driven a strong operating performance trend over the past few years, supported by UnitedHealth Group’s operations at UnitedHealthcare Insurance and at Optum. The organization expects this growth to continue in the medium term.

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