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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JANUARY 15, 2010 12:00 AM (EST)
A.M. Best Co. has downgraded the financial strength rating to B+ (Good) from B++ (Good) and issuer credit rating to "bbb-" from "bbb" of Capacity Insurance Company (CIC) (Sunrise, FL). Both ratings have been removed from under review with negative implications and assigned a stable outlook.
These rating actions follow the 2009 acquisition of CIC by Focus Holdings, LLC and reflect CIC's history of poor operating performance, single state concentration of business risk in Florida and a high expense structure. In addition, A.M. Best is concerned about the risks associated with the successful execution by the new management team of the operational and financial plans being implemented over the next year, which are designed to improve operating profitability and CIC's overall financial strength.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.