{"id":942664,"date":"2026-03-06T11:07:02","date_gmt":"2026-03-06T16:07:02","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/"},"modified":"2026-03-06T11:07:02","modified_gmt":"2026-03-06T16:07:02","slug":"am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/","title":{"rendered":"AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes"},"content":{"rendered":"<p>        <!--.bwalignc { text-align: center; list-style-position: inside }\n.bwuline { text-decoration: underline }body {font:normal small Arial,Helvetica,sans-serif;color:#000;background-color:#fff;padding:24px;margin:0;} a img {border:0;} h3 {font-size:medium;color:#000;margin:0 0 1em 0; text-align:center;}-->  <\/p>\n<p class=\"bwalignc\"><b>AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes<\/b><\/p>\n<p>OLDWICK, N.J.&#8211;(<a href=\"http:\/\/www.businesswire.com\">BUSINESS WIRE<\/a>)&#8211;<b>AM Best <\/b>has assigned a Long-Term Issue Credit Rating of \u201cbbb-\u201d (Good) to the $1 billion, 6.625% fixed rate junior subordinated notes, due 2056, of Humana Inc. (Humana) (headquartered in Louisville, KY) [NYSE: HUM]. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Humana and its subsidiaries remain unchanged.<\/p>\n<p>\nHumana expects to use the proceeds from the junior subordinated notes issuance for general corporate purposes, which may include repayment of existing indebtedness, including borrowings under its commercial paper program. AM Best expects the issuance to increase financial leverage slightly in the intermediate term. The company\u2019s financial leverage, as measured by AM Best, will increase slightly from year-end 2025 to approximately 41.8% with the new issuance. Financial leverage has exceeded the organization&#8217;s long-term target debt-to-capital ratio of 40%, but management expects to manage to this target through increases in equity and continued deleveraging over the course of the year.<\/p>\n<p>\nHumana\u2019s earnings before interest and taxes (EBIT) interest coverage remains solid at 4-8 times in recent years; however, it has dropped off from the double-digit range a few years ago due to a decline in operating results, driven by increased utilization and changes in reimbursement in its Medicare Advantage segment in the last few years, as well as higher interest expenses.<\/p>\n<p>\nHumana has sound liquidity measures as the organization generates consistently strong operating cash flows; however, cash flow in 2025 totaled $0.9 billion, a notable decrease from $3 billion in 2024. This was driven by timing impacts, the increase in receivables due to the Inflation Reduction Act and the unfavorable impact of working capital items. Liquidity is also supported by dividends primarily from subsidiaries, which totaled $1.1 billion for 2025, as well as its lines of credit totaling $5 billion, as well as its $5 billion commercial paper program and access to short-term borrowings from the Federal Home Loan Bank of Cincinnati through its subsidiary, Humana Insurance Company.<\/p>\n<p>\nThe organization\u2019s consistent-yet-declining profitability has driven equity growth over the past five-year period. Humana again generated strong premium growth in 2025, driven by its core Medicare Advantage segment, but premium revenue is also generated from its Medicaid managed care and supplementary lines. Although profitability increased in 2025, net income was impacted by increased utilization in Medicare Advantage. AM Best expects the company\u2019s earnings to remain positive albeit with margin compression throughout 2026.<\/p>\n<p><b>This press release relates to Credit Ratings that have been published on AM Best\u2019s 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\u2019s <\/b><a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fratings.ambest.com%2Fratingeventdisclosures.aspx&amp;esheet=54440537&amp;newsitemid=20260306918327&amp;lan=en-US&amp;anchor=Recent+Rating+Activity&amp;index=1&amp;md5=72576cc7ee633b6c78e09e6b7543dddf\"><b>Recent Rating Activity<\/b><\/a><b> web page. For additional information regarding the use and limitations of Credit Rating opinions, please view <\/b><a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww3.ambest.com%2Fambv%2Fratingmethodology%2FOpenPDF.aspx%3Fri%3D1866&amp;esheet=54440537&amp;newsitemid=20260306918327&amp;lan=en-US&amp;anchor=Guide+to+Best%27s+Credit+Ratings&amp;index=2&amp;md5=1eebe571c96331773524eccff37c57fd\"><b>Guide to Best&#8217;s Credit Ratings<\/b><\/a><b>. For information on the proper use of Best\u2019s Credit Ratings, Best\u2019s Performance Assessments, Best\u2019s Preliminary Credit Assessments and AM Best press releases, please view <\/b><a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.ambest.com%2Fratings%2Fguidetouse.pdf&amp;esheet=54440537&amp;newsitemid=20260306918327&amp;lan=en-US&amp;anchor=Guide+to+Proper+Use+of+Best%26%238217%3Bs+Ratings+%26amp%3B+Assessments&amp;index=3&amp;md5=f76d725edb772f021af7844d92fca096\"><b>Guide to Proper Use of Best\u2019s Ratings &amp; Assessments<\/b><\/a><b>.<\/b><\/p>\n<p><b>AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 <\/b><b>countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit <\/b><a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.ambest.com%2F&amp;esheet=54440537&amp;newsitemid=20260306918327&amp;lan=en-US&amp;anchor=www.ambest.com&amp;index=4&amp;md5=150903e5366725d5b7430cbf325c05a7\"><b>www.ambest.com<\/b><\/a><b>.<\/b><\/p>\n<p class=\"bwalignc\"><b>Copyright \u00a9 2026 by A.M. Best Rating Services, Inc. and\/or its affiliates. ALL RIGHTS RESERVED.<\/b><\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20260306918327r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\" style=\"width:0;height:0\" \/><span class=\"bwct31415\" \/><\/p>\n<p id=\"mmgallerylink\"><span id=\"mmgallerylink-phrase\">View source version on businesswire.com: <\/span><span id=\"mmgallerylink-link\"><a href=\"https:\/\/www.businesswire.com\/news\/home\/20260306918327\/en\/\" rel=\"nofollow\">https:\/\/www.businesswire.com\/news\/home\/20260306918327\/en\/<\/a><\/span><\/p>\n<p><b>James Quito<br \/>\n<\/b><br \/><b>Financial Analyst<br \/>\n<\/b><br \/><b>+1 908 882 2460<br \/>\n<\/b><br \/><a rel=\"nofollow\" href=\"mailto:james.quito@ambest.com\">james.quito@ambest.com<br \/>\n<\/a><\/p>\n<p><b>Joseph Zazzera<br \/>\n<\/b><br \/><b>Director<br \/>\n<\/b><br \/><b>+1 908 882 2442<br \/>\n<\/b><br \/><span class=\"bwuline\"><a rel=\"nofollow\" href=\"mailto:joseph.zazzera@ambest.com\">joseph.zazzera@ambest.com<br \/>\n<\/a><\/span><\/p>\n<p><b>Christopher Sharkey<br \/>\n<\/b><br \/><b>Associate Director, Public Relations<br \/>\n<\/b><br \/><b>+1 908 882 2310<br \/>\n<\/b><br \/><a rel=\"nofollow\" href=\"mailto:christopher.sharkey@ambest.com\">christopher.sharkey@ambest.com<br \/>\n<\/a><\/p>\n<p><b>Al Slavin<br \/>\n<\/b><br \/><b>Senior Public Relations Specialist<br \/>\n<\/b><br \/><b>+1 908 882 2318<br \/>\n<\/b><br \/><a rel=\"nofollow\" href=\"mailto:al.slavin@ambest.com\">al.slavin@ambest.com<\/a><\/p>\n<p><b>KEYWORDS:<\/b> New York New Jersey Europe United States North America<\/p>\n<p><b>INDUSTRY KEYWORDS:<\/b> Finance Data Analytics Consulting Professional Services Insurance<\/p>\n<p><b>MEDIA:<\/b><\/p>\n<table cellpadding=\"3\" cellspacing=\"3\">\n<tr>\n<td><font face=\"Arial\" size=\"2\"><b>Logo<\/b><\/font><\/td>\n<\/tr>\n<tr>\n<td><img decoding=\"async\" src=\"https:\/\/mms.businesswire.com\/media\/20260306918327\/en\/828829\/3\/AM_Best_Logo.jpg\" alt=\"Logo\" \/><\/td>\n<\/tr>\n<tr>\n<td><font face=\"Arial\" size=\"2\"><\/font><\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes OLDWICK, N.J.&#8211;(BUSINESS WIRE)&#8211;AM Best has assigned a Long-Term Issue Credit Rating of \u201cbbb-\u201d (Good) to the $1 billion, 6.625% fixed rate junior subordinated notes, due 2056, of Humana Inc. (Humana) (headquartered in Louisville, KY) [NYSE: HUM]. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Humana and its subsidiaries remain unchanged. Humana expects to use the proceeds from the junior subordinated notes issuance for general corporate purposes, which may include repayment of existing indebtedness, including borrowings under its commercial paper program. AM Best expects the issuance to increase financial leverage slightly in the intermediate term. The company\u2019s financial leverage, as measured by &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-942664","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes OLDWICK, N.J.&#8211;(BUSINESS WIRE)&#8211;AM Best has assigned a Long-Term Issue Credit Rating of \u201cbbb-\u201d (Good) to the $1 billion, 6.625% fixed rate junior subordinated notes, due 2056, of Humana Inc. (Humana) (headquartered in Louisville, KY) [NYSE: HUM]. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Humana and its subsidiaries remain unchanged. Humana expects to use the proceeds from the junior subordinated notes issuance for general corporate purposes, which may include repayment of existing indebtedness, including borrowings under its commercial paper program. AM Best expects the issuance to increase financial leverage slightly in the intermediate term. 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Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/","og_locale":"en_US","og_type":"article","og_title":"AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes - Market Newsdesk","og_description":"AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes OLDWICK, N.J.&#8211;(BUSINESS WIRE)&#8211;AM Best has assigned a Long-Term Issue Credit Rating of \u201cbbb-\u201d (Good) to the $1 billion, 6.625% fixed rate junior subordinated notes, due 2056, of Humana Inc. (Humana) (headquartered in Louisville, KY) [NYSE: HUM]. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Humana and its subsidiaries remain unchanged. Humana expects to use the proceeds from the junior subordinated notes issuance for general corporate purposes, which may include repayment of existing indebtedness, including borrowings under its commercial paper program. AM Best expects the issuance to increase financial leverage slightly in the intermediate term. The company\u2019s financial leverage, as measured by &hellip; Continue reading \"AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/","og_site_name":"Market Newsdesk","article_published_time":"2026-03-06T16:07:02+00:00","og_image":[{"url":"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20260306918327r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes","datePublished":"2026-03-06T16:07:02+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/"},"wordCount":659,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/#primaryimage"},"thumbnailUrl":"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20260306918327r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-assigns-issue-credit-rating-to-humana-inc-s-new-junior-subordinated-notes\/","name":"AM Best Assigns Issue Credit Rating to Humana Inc.\u2019s New Junior Subordinated Notes - 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