logo
  Join        Login             Stock Quote

A.M. Best Assigns Rating to Centene Corporation's Senior Unsecured Notes

Tuesday, January 22, 2013 2:28 PM


A.M. Best Co. has assigned a debt rating of “bb” to the $175 million 5.75% senior unsecured notes due 2017 and issued in November 2012 of Centene Corporation (Centene) (headquartered in St. Louis, MO) (NYSE: CNC). The assigned outlook is stable.

The notes are an add-on to the existing 5.75% senior notes that will mature in 2017. The new notes were priced at 5.75% with a yield to maturity of 4.288%. Including the add-on debt, the total debt issued under this series originally issued in May 2011 is $425 million. The majority of the proceeds have been used for capitalizing Centene’s managed care subsidiaries in support of the growth in its statutory revenues over the past year as contracts have been renewed and growing and new business have been added. The new debt levels will drive the debt-to-capital percentage on a pro-forma basis higher to a range of approximately 31% from 29.2% at the quarter ending September 30, 2012. Centene has additional financial flexibility in its $400 million credit facility.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

(Source: Business Wire )
(Source: Quotemedia)

Advertisement
Advertisement



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.