AM Best has assigned Long-Term Issue Credit Ratings (Long-Term IRs) of “a” (Excellent) to UnitedHealth Group Incorporated’s (UnitedHealth Group) (Minnetonka, MN) [NYSE: UNH] recently issued senior unsecured notes. (See detailed list below.) The outlook assigned to these Credit Ratings (ratings) is stable.

The proceeds from these issues are expected to be used for general corporate purposes, including repayment of outstanding commercial paper and upcoming debt maturities. At Dec. 31, 2023, the company had approximately $1.1 billion of commercial paper outstanding and debt maturities for 2024, which totaled about $3 billion. Financial leverage as measured by AM Best was about 40% at year-end 2023. These debt issuances are expected to increase financial leverage modestly in the near term. UnitedHealth Group manages its financial leverage at 40% on a long-term basis with some variances for timing, planned capital deployment and acquisitions.

UnitedHealth Group has strong interest coverage and operating cash flows with a consistent growth trend in revenues and earnings. Non-regulated cash flows are material for the organization and support exceptional financial flexibility for the organization. Financial flexibility is also supported by the commercial paper program, $18 billion revolving credit facility, parent company cash and dividends from the regulated insurance subsidiaries.

The Long-Term IRs of “a” (Excellent) have been assigned with stable outlooks to the following senior unsecured notes:

• $500 million 4.6 % senior unsecured notes, due 2027
• $400 million 4.7 % senior unsecured notes, due 2029
• $1 billion 4.9 % senior unsecured notes, due 2031
• $1.25 billion 5 % senior unsecured notes, due 2034
• $1.75 billion 5.375 % senior unsecured notes due, 2054
• $1.1 billion 5.5% senior unsecured notes, due 2064

This press release relates to Credit Ratings that have been published on AM Best’s 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’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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