This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A.M. Best Assigns Debt Rating To WellPoint, Inc.’s Forthcoming Senior Unsecured Notes

A.M. Best Co. has assigned a debt rating of “bbb+” to the proposed $1.25 billion senior unsecured notes to be issued by WellPoint, Inc. (WellPoint) (Indianapolis, IN) (NYSE: WLP). The assigned outlook is stable. The existing ratings of WellPoint and its subsidiaries are unchanged.

The securities are expected to be issued in two separate tranches consisting of $650 million five and $600 million 30-year notes. A portion of the proceeds from the issuance is anticipated to be used to fund a tender offer launched by WellPoint on July 30, 2013. Any excess proceeds will be used for general corporate purposes, which could include repayment of outstanding debt. The cash tender offer for $600 million is comprised of two tranches: the first tranche is an offer to purchase $300 million of WellPoint’s 5.875% notes due 2017 and 7.0% notes due 2019; and the second tranche is an offer to purchase $300 million of WellPoint’s 5.95% notes due 2034, 5.85% notes due 2036, 6.375% notes due 2037 and 5.8% notes due 2040.

The debt issue and tender offer should not have a material effect on WellPoint’s financial leverage. WellPoint’s debt-to-capital ratio was about 38% as of June 30, 2013, which A.M. Best considers high. The elevation in leverage is mainly due to the financing of WellPoint’s acquisition of AMERIGROUP Corporation, which closed on December 24, 2012. It is anticipated that leverage will moderate over the next 18 months. A.M. Best notes that WellPoint’s interest coverage is good at approximately eight times. WellPoint maintains a good level of financial flexibility through its strong parent company cash balance, subsidiary dividends, its $2.5 billion commercial paper program and undrawn $2.0 billion 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.

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.



1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs