AM Best has assigned a Long-Term Issue Credit Rating of “bbb+” (Good) to Elevance Health Inc.’s (Elevance Health) (headquartered in Indianapolis, IN) newly issued senior unsecured notes of $750 million, 4.0% senior unsecured notes, due 2028; $750 million, 4.6% senior unsecured notes, due 2032; $1 billion, 5.0% senior unsecured notes, due 2036; and $500 million, 5.7% senior unsecured notes, due 2055. The outlook assigned to this Credit Rating is stable.

The proceeds from the debt issuances are expected to be used for general corporate purposes, which may include investments and pre-fund debt maturities due in October 2025 and the first quarter of 2026. AM Best anticipates the issuances to temporarily increase the company’s financial leverage ratio to just over 43%. However, financial leverage should moderate after the repayment of the few upcoming maturities, but will remain slightly over Elevance Health’s long-term target of 40% going into fourth-quarter 2025. Furthermore, Elevance Health’s debt maturity structure is well-laddered and interest coverage remains stable.

Moreover, Elevance Health has excellent financial flexibility supported by its parent company’s cash, the insurance subsidiary’s dividend capacity, non-regulated cash flow, a commercial paper program and a revolving credit agreement. Elevance Health has demonstrated strong interest coverage of 9.3 times through second-quarter 2025.

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