Press Release - OCTOBER 03, 2019

AM Best Affirms Credit Ratings of The American Road Insurance Company


CONTACTS:
 Vicky Riggs
Senior Financial Analyst
+1 908 439 2200, ext. 5039
vicky.riggs@ambest.com

Susan Molineux
Director
+1 908 439 2200, ext. 5829
susan.molineux@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - OCTOBER 03, 2019
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of The American Road Insurance Company (TARIC) (Dearborn, MI). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect TARIC’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

TARIC is part of an insurance holding company system wholly owned by Ford Motor Credit Company LLC (Ford Credit), which in turn is an indirect, wholly owned subsidiary of Ford Motor Company (Ford) [NYSE:F]. TARIC operates more like a captive insurance company for the Ford enterprise, and provides a variety of coverages directly to Ford or Ford Credit, primarily automobile wholesale, collateral protection, inland marine, extended service business and commercial auto liability. Ford’s strong brand recognition as one of the leading automobile providers in the United States and Canada benefits TARIC. TARIC is vulnerable to macroeconomic and market conditions that potentially could have a detrimental impact on Ford’s ability to sell automobiles and generate premium for TARIC; however, AM Best views the efficiencies gained by geographic diversification and immediate access to business as a strength for TARIC.

Significant deterioration in operating performance or risk-adjusted capitalization may result in downward movement in the ratings and/or outlooks. In addition, negative rating action also may occur if Ford’s credit profile deteriorates.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

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.


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