Best’s News & Research Service - June 15, 2016 04:54 PM (EDT)
A.M. Best Revises Under Review Status to Positive for Dentists Benefits Ins Co., Northwest Dentists Ins Co.; Affirms Ratings
- June 15, 2016 04:54 PM (EDT)
Oldwick //BestWire// - A.M. Best has affirmed the financial strength rating of B (Fair) and the issuer credit rating of “bb+” of Dentists Benefits Insurance Company (Dentists Benefits) (Portland, OR) and Northwest Dentists Insurance Company (NORDIC) (Seattle, WA). A.M. Best has also maintained the under review status, while revising the implications to positive from negative.
The rating action comes following the recent announcement that The Dentists Insurance Company (TDIC), an indirect subsidiary of the California Dental Association, has signed a definitive agreement to acquire these companies from Moda Inc. (Moda), an indirect subsidiary of the Oregon Dental Service dba Delta Dental Plan of Oregon. The ratings of Dentists Benefits and NORDIC were downgraded and placed under review with negative implications in December 2015, as a result of liquidity issues at Moda Health Plan, Inc. (Moda Health Plan), which prompted regulatory action against the company. Moda Health Plan is a wholly owned subsidiary of Moda and the immediate parent of Dentists Benefits. The change in ownership to TDIC would relieve that pressure and could potentially lead to a rating upgrade. However, the deal requires regulatory approval and the ratings will remain under review pending closing of the transaction and further analysis of the details of the acquisition by A.M. Best.
This press release relates to rating(s) 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.
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