CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 20, 2019 11:38 AM (EDT)
AM Best has downgraded the Financial Strength Rating to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating to “bb” from “bbb-” of Dental Care Plus, Inc. (Dental Care Plus) (Cincinnati, OH). In addition, AM Best has maintained the under review with developing implications status for the Credit Ratings (ratings). Concurrently, AM Best has withdrawn the ratings of Dental Care Plus at the company’s request to no longer participate in AM Best’s interactive rating process.
The ratings reflect Dental Care Plus’s balance sheet strength, which AM Best categorizes as weak, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
AM Best placed the ratings under review with developing implications in March 2019, following the announcement that DentaQuest, LLC and DCP Holding Company, the parent company of Dental Care Plus, had entered into a definitive merger agreement. The transaction has since closed; however, the rating downgrades are based on large drop in capital at Dental Care Plus, following the withdrawal of $5.5 million in capital in the form of a dividend paid to DCP Holding Company for distribution to its shareholders at the time of the transaction’s close. This has resulted in a significant decline in Dental Care Plus’ risk-adjusted capital, which AM Best has assessed as very weak, as measured by Best’s Capital Adequacy Ratio. The under review with developing implications status is based upon AM Best’s uncertainty of the relationship between Dental Care Plus and its new ultimate parent, DentaQuest, LLC.
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 credit rating agency and information provider with an exclusive focus on the insurance industry.