A.M. Best Co. has assigned a debt rating of “bbb” to the forthcoming $250 million 6.125% senior unsecured notes, due August 2023 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. (For further information, please see A.M. Best’s press release dated May 24, 2013).
The proceeds from the issuance will be used in the continued support and development of AmTrust’s business and for other general corporate purposes. With the issuance of these senior notes, AmTrust’s adjusted debt-to-total capital and adjusted debt-to-tangible capital have risen to their highest historical levels at approximately 27% and 40%, respectively. However, these measures are within A.M. Best’s guidelines for AmTrust’s current rating level. In addition, AmTrust’s interest coverage ratio is expected to remain adequate for its rating.
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.
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 © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.