Moody's gives Centene notes Ba1

Moody's Investors Service said it assigned a Ba1 senior unsecured debt rating to Centene Corp.'s planned offering of about $2 billion of senior unsecured debt, due February 2030. Proceeds will be used to refinance about $1 billion of 6 1/8% notes due 2024 and $1 billion of 4¾% notes due 2022. The 2024 notes are callable now; the 2022 notes are scheduled to be called in May.

Separately, Moody's assigned a Ba1 rating to the $1.95 billion of senior notes due 2025 and 2026 issued by Centene in exchange for WellCare Health Plans, Inc.'s outstanding notes, pursuant to the exchange offer which started on Nov. 1 and was completed last month.

Since the proceeds of the $2 billion new issuance will be used to refinance debt and the $1.95 billion was issued in an exchange, there will not be an effect on Centene's leverage, though will be a temporary increase in leverage because the 2022 notes will not be called until May.

The outlook on Centene is stable.

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