A.M. Best has assigned a debt rating of “bb+” to the forthcoming $100 million 7.25% non-cumulative perpetual preferred stock 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 A.M. Best’s press release dated May 30, 2014.)
The proceeds from the issuance will be used in continued support and development of AmTrust’s business and for other general corporate purposes. With the issuance of the preferred shares, AmTrust’s adjusted debt-to-total capital and adjusted debt-to-tangible capital are approximately 23% and 32%, 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 this 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.
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