Best’s News & Research Service - December 15, 2020 10:48 AM (EST)
AM Best Assigns Issue Credit Rating to Ascot Group Limited’s Senior Unsecured Notes
- December 15, 2020 10:48 AM (EST)
London //BestWire// - AM Best has assigned a Long-Term Issue Credit Rating of “bbb” to the USD 400 million, 4.25% fixed rate senior unsecured notes due 2030, issued by Ascot Group Limited (AGL) (Bermuda) on 15 December 2020. The outlook assigned to this Credit Rating (rating) is positive.
AGL intends to downstream the proceeds to its U.S. insurance operating subsidiaries – Ascot Insurance Company and Ascot Specialty Insurance Company. The proceeds will provide additional capital and support the growth of these operations, allowing them to benefit from favourable insurance market conditions.
The rating of the senior notes is three notches below the Long-Term Issuer Credit Ratings of Ascot Bermuda Limited, Ascot Insurance Company and Ascot Specialty Insurance Company, reflecting the fact that the notes are issued by their non-operating holding company, AGL. The notes represent senior unsecured obligations of the issuer and will rank equally in right of payment with any future unsecured, unsubordinated indebtedness and senior in right of payment to any future unsecured subordinated indebtedness, and are contractually subordinated in right of payment to all obligations of AGL’s subsidiaries, including existing and future policyholder obligations of insurance and reinsurance subsidiaries.
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 Guide to 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.
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