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A.M. Best Assigns Debt Rating to AmTrust Financial Services, Inc’s Subordinated Debt Offering

June 12, 2015 2:45 PM EDT

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has assigned a debt rating of “bbb-” to the $150 million 7.25% subordinated notes due 2055 of AmTrust Financial Services, Inc. (AmTrust) (headquartered in New York, NY) [NASDAQ:AFSI]. The outlook assigned to the rating is stable. All remaining ratings of AmTrust and its subsidiaries are unchanged. (Please see related A.M. Best press release dated May 29, 2015.)

The proceeds from the issuance will be used for other general corporate purposes. With the issuance of the subordinated notes, AmTrust’s adjusted debt-to-total capital and adjusted debt-to-tangible capital are approximately 21% and 27%, respectively, and are within A.M. Best’s guidelines for its current rating level. In addition, AmTrust’s interest coverage ratio is expected to remain solid for its ratings.

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.

Key insurance criteria reports utilized:

  • Analyzing Insurance Holding Company Liquidity
  • Equity Credit for Hybrid Securities
  • Insurance Holding Company and Debt Ratings
  • Risk Management and the Rating Process for Insurance Companies

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

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 © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Brian O’Larte, (908) 439-2200, ext. 5138
Senior Financial Analyst
brian.o'[email protected]
or
Christopher Sharkey, (908) 439-2200, ext. 5159
Manager, Public Relations
[email protected]
or
Michael Lagomarsino, CFA, (908) 439-2200, ext. 5810
Assistant Vice President
[email protected]
or
Jim Peavy, (908) 439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best



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