Company Website:
http://www.ambest.com
OLDWICK, N.J. -- (Business Wire)
A.M. Best has affirmed the issuer credit rating (ICR) of “bbb+”
of ACMAT Corporation (ACMAT) (Farmington, CT)(Pink Sheets:ACMTA).
A.M. Best also has affirmed the financial strength rating of A
(Excellent) and the ICR of “a+” of ACMAT’s wholly owned subsidiary, ACSTAR
Insurance Company (ACSTAR) (Chicago, IL). The outlook for all
ratings is stable.
The rating affirmations reflect ACSTAR’s strong risk-adjusted
capitalization, sustained underwriting and operating income through the
construction cycle, conservative business philosophy and proven risk
management practices. Underwriting income has narrowed in recent years
as the decline in ACSTAR’s premium base has outpaced the decline in the
company’s operating expenses. Partially offsetting these positive rating
factors are ACSTAR’s limited product diversification as a monoline
provider of surety bonds, the effects of a still sluggish public
construction sector on premiums, and the issuance of dividends primarily
to service the debt and stock repurchase program of ACMAT.
A.M. Best believes upward movement in the ratings at this point is
unlikely. Negative rating actions could occur if risk-adjusted capital
and/or operating performance fall markedly short of A.M. Best’s
expectations.
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:
-
Insurance Holding Company and Debt Ratings
-
Rating Surety Companies
-
Risk Management and the Rating Process for Insurance Companies
-
Understanding BCAR for Property/Casualty Insurers
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 © 2014 by A.M. Best Company, Inc.ALL RIGHTS
RESERVED.
Contacts:
A.M. Best
Robert Valenta,908-439-2200, ext. 5291
Senior
Financial Analyst
robert.valenta@ambest.com
or
Gerard
Altonji,908-439-2200, ext. 5626
Assistant Vice
President
gerard.altonji@ambest.com
or
Christopher
Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim
Peavy, 908-439-2200, ext. 5644
Assistant Vice President,
Public Relations
james.peavy@ambest.com
Source: A.M. Best Company, Inc.
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