A.M. Best Withdraws Ratings of Affirmative Insurance Holdings, Inc. and Its Subsidiaries
A.M. Best Withdraws Ratings of Affirmative Insurance Holdings, Inc. and Its Subsidiaries
OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has downgraded the financial strength rating to C- (Weak) from C (Weak) and the issuer credit ratings (ICR) to "cc" from "ccc" of Affirmative Insurance Company (Affirmative) (Burr Ridge, IL) and its wholly owned subsidiary, USAgencies Casualty Insurance Company, Inc. (Baton Rouge, LA). In addition, A.M. Best has affirmed the ICR of "c" of the publicly traded parent, Affirmative Insurance Holdings, Inc. (headquartered in Addison, TX) [NASDAQ: AFFM]. The outlook for all ratings is negative. Concurrently, A.M. Best has withdrawn the ratings as the parent has requested to no longer participate in A.M. Best's interactive rating process.
These rating actions are a result of the organization's continued loss of policyholders' surplus, weakened risk-adjusted capitalization, unfavorable operating performance and solvency issues due to failure to meet financial debt covenants and regulatory reserve funding requirements. In addition, there are serious concerns regarding the parent's ability to repay senior debt due January 30, 2014.
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, visitwww.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
A.M. Best Co.
Charles M. Huber, 908-439-2200, ext. 5122
Managing Senior Financial Analyst
charles.huber@ambest.com
or
Joseph A. Burtone, 908-439-2200, ext. 5125
Assistant Vice President
joseph.burtone@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
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