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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 23, 2016 01:52 PM (EDT)
A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bb+” to the recently announced $250 million 6.95% non-cumulative preferred stock (Series F Preferred Stock) of AmTrust Financial Services, Inc. (AFSI) [NASDAQ National Market: AFSI] (headquartered in New York, NY). The outlook assigned to this Credit Rating is stable.
The Series F Preferred Stock is perpetual, but the shares may be called by AFSI at any time on or after Sept. 27, 2021. Dividends are non-cumulative and will be paid quarterly on the 15th of March, June, September and December, commencing on Dec. 15, 2016, when, as and if declared by AFSI’s board of directors.
The offering increased by up to $37.5 million upon exercise of an underwriters’ option at any time during the 30-day period, commencing on Sept. 20, 2016. Proceeds will be used for general corporate purposes.
AFSI’s adjusted debt to total capital remains within A.M. Best’s guidelines, measuring 25.3% if the underwriters’ option is exercised. Unadjusted debt to total capital is also within guidelines, but is at the high end of the range for the rating level. Interest coverage also is well within expectations for the rating. A.M. Best continues to closely monitor AFSI’s leverage relative to total and tangible capital. The Long-Term IR of the Series F Preferred Stock is two notches down from AFSI’s Long-Term Issuer Credit Rating of “bbb” with a stable outlook, reflecting the subordination of the preferred shares within the capital structure.
This press release relates to Credit Ratings 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 see A.M. 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.
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