Fitch assigns Centene notes BB+

Fitch Ratings said it assigned a BB+ rating to Centene Corp.’s issuance of senior unsecured notes.

“The new senior debt issuance is rated at the same level as CNC’s existing senior unsecured notes, which is one notch below the holding company issuer default rating (BBB-/ stable) and reflects standard notching based on Fitch’s rating criteria,” the agency said in a press release.

Proceeds will fund an exchange of $2.2 billion of senior unsecured notes at a lower interest rate, which is expected to save the company more than $40 million annually, Fitch said.

“Since the transaction is a debt exchange, financial leverage is not expected to change materially,” Fitch said.

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