Best’s News & Research Service - September 17, 2015 10:08 AM (EDT)
A.M. Best Upgrades Issuer Credit Rating for Great Plains Casualty, Inc.
Oldwick //BestWire// - A.M. Best has upgraded the issuer credit rating (ICR) to "bbb+" from "bbb" and affirmed the financial strength rating (FSR) of B++ (Good) of Great Plains Casualty, Inc. (Great Plains) (Cedar Rapids, IA). The outlook for the ICR has been revised to stable from positive while the outlook for the FSR is stable.
The ICR upgrade reflects Great Plains' strong risk-adjusted capitalization, due to its conservative underwriting and investment leverage measures, as well as its limited but consistently favorable underwriting and operating performance since its inception. The ratings also reflect the company's in-depth knowledge of the commercial trucking industry and the favorable financial leverage and interest coverage of its parent holding company, Hillcrest Holdings, Inc. In addition, the company benefits from the expertise gained by having common management between Great Plains and its sister company, CRST International Inc., which provides transportation solutions and services to manufacturers and distributors in the United States and Canada.
Offsetting these positive factors is Great Plains' narrow product focus and inherent risk as a relatively new company attempting to gain market share and expand its geographic presence.
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 visit A.M. Best's Ratings & Criteria Center.
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