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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - OCTOBER 16, 2008 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of B (Fair) and issuer credit rating (ICR) of "bb" of Minnesota Surety and Trust Company (MST) (Austin, MN). The outlook for both ratings is negative. Concurrently, A.M. Best has withdrawn the ratings at the company's request and assigned a category NR-4 (Company Request) to the FSR and an "nr" to the ICR.
The ratings reflect MST's considerable decline in surplus due to a sizable surety loss in late 2007, the lack of reinsurance and additional losses from an insolvent bail bond agent. Offsetting these negatives is the additional capital provided during 2008, wherein the owners and other business partners contributed $594,500 to MST.
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.