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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 11, 2015 11:32 AM (EDT)
A.M. Best has assigned an issue rating of "bbb-" to the $125 million 7.5% subordinated notes to be issued by AmTrust Financial Services, Inc. (AFSI) (NASDAQ:AFSI), headquartered in New York, NY. The outlook assigned is stable. The offering may be increased upon exercise of an underwriters' over-allotment option.
Net proceeds from the sale of the notes will be used in part to finance the previously announced acquisitions of Warranty Solutions (including its subsidiary, Heritage Indemnity Company) and N. V. Nationale Borg-Maatschappij and its affiliates. Remaining funds will be used for general corporate purposes.
AFSI's adjusted debt to total capital and adjusted debt to tangible capital ratios are within A.M. Best's guidelines for the proposed rating, even at the upper end of the potential issue. AFSI's interest coverage ratios are also well-supportive of the rating.
AFSI's issuer credit rating of "bbb," its existing issue ratings and the ratings of its operating insurance subsidiaries are unchanged.
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.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.