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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - DECEMBER 12, 2007 12:00 AM (EST)
A.M. Best Co. has assigned an issuer credit rating of "a-"and has affirmed the financial strength rating of A- (Excellent) of Pathfinder Insurance Company (Pathfinder) (Denver, CO) [NYSE: CAR]. The outlook for both ratings is stable.
The ratings reflect Pathfinder's strong capitalization, conservative leverage and operating strategies and historically high profitability. Partially offsetting these positive rating factors are the company's limited scope of business and its dependence on its ultimate parent, Avis Budget Group Inc. (Avis Budget) for business generation.
Pathfinder continues to have minimal losses due to the structure of coverage provided and the strict risk management program in place. The ratings also consider the company's strategic value in providing automobile liability insurance to a portion of Avis Budget's corporately owned rental fleets.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
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.