AM Best Information Services

FEBRUARY 10, 2017 11:36 AM (EST)

A.M. Best Upgrades Credit Ratings of Hawaii Dental Service

 David Mitchell
Senior Financial Analyst
+1 908 439 2200, ext. 5556

Sally Rosen
Senior Director
+1 908 439 2200, ext. 5280
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644


OLDWICK - FEBRUARY 10, 2017 11:36 AM (EST)
A.M. Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-“ of Hawaii Dental Service (HDS) (Honolulu, HI). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The rating upgrades reflect HDS’ strong risk-adjusted capitalization, which has continued to improve due to the accumulation of earnings. Furthermore, HDS’ return on revenue has remained at 8% or higher. The company has a dominant market share with membership in all segments of the population. Additionally, HDS has added some revenue and earnings diversity by offering information technology services through its affiliated company, Hawaii Client Services.

Offsetting rating factors include HDS operating predominantly in Hawaii, which creates geographic and regulatory risks. Furthermore, Hawaii’s low unemployment rate and limited population growth is expected to constrain membership development. HDS’ customer base is dominated by a perennial large group customer, the loss of which could negatively impact the company.

This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.

Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.

AMB# Company Name
058183 Hawaii Dental Service