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FOR IMMEDIATE RELEASE
OLDWICK - MAY 29, 2019 02:07 PM (EDT)
AM Best has assigned indicative Long-Term Issue Credit Ratings of “bbb-” to senior unsecured issues, “bb+” to subordinated issues and “bb” to preferred stock to the recently filed shelf registration of Hallmark Financial Services, Inc. (Hallmark Financial) (headquartered in Fort Worth, TX) [NASDAQ: HALL]. The outlook assigned to these Credit Ratings (ratings) is stable.
Effective May 15, 2019, Hallmark Financial filed a shelf registration for securities at a proposed maximum aggregate offering price of $150 million. Due to potential issuance of this new debt, Hallmark Financial’s debt-to-total capital and adjusted debt-to-tangible capital measures remain within AM Best’s guidelines for its current rating level. In addition, AM Best expects Hallmark Financial’s interest coverage ratio to remain adequate for its ratings.
Hallmark Financial is a diversified property/casualty insurance group offering commercial and personal insurance to businesses and individuals in specialty and niche markets. The insurance subsidiaries generate earnings and steady cash flows to the holding company, supporting its cash position and interest coverage metrics.
This press release relates to Credit Ratings that have been published on AM 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 see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.