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 negative.

The proceeds from UnitedHealth Group’s recent $3 billion debt issuance are expected to be used for general corporate purposes, including repayment of short-term borrowings, commercial paper and/or upcoming debt maturities. As of May 31, 2025, UnitedHealth Group had approximately $12.7 billion of short-term borrowings outstanding. Financial leverage at the end of first quarter 2025 was elevated at 44.6%, as measured by AM Best, and is above the company’s long-term target of 40%. Additionally, earnings before interest and tax coverage remained good but declined in 2024 to about eight times. Earnings are expected to remain favorable but will be lower than historical levels due to performance of the Medicare Advantage business. UnitedHealth Group has strong financial flexibility with material non-regulated operating cash flows from its Optum operations. Equity has shown consistent growth over the past five years, driven entirely by retained earnings despite large share repurchases and growing dividend programs. Strong liquidity is driven by favorable operating cash flows, parent company cash, a commercial paper program and a $21 billion revolving credit facility.

The following Long-Term IRs have been assigned with negative outlooks:

UnitedHealth Group Incorporated—

-- “a” (Excellent) on $500 million 4.40 % senior unsecured notes, due June 15, 2028

-- “a” (Excellent) on $750 million 4.65% senior unsecured notes, due Jan. 15, 2031

-- “a” (Excellent) on $1 billion 5.3% senior unsecured notes, due June 15, 2035

-- “a” (Excellent) on $750 million 5.95% senior unsecured notes, due June 15, 2055

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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