Business
A.M. Best Affirms Credit Ratings of ACMAT Corporation and ACSTAR Insurance Company
A.M. Best Affirms Credit Ratings of ACMAT Corporation and ACSTAR Insurance Company.
About this update from Acmat Corp.
[{"type":"text","content":"\n \n A.M. Best has affirmed the Long-Term Issuer Credit Rating \n (Long-Term ICR) of “bbb+” of ACMAT Corporation (ACMAT) \n (Farmington, CT) [Pink Sheets: ACMTA]. A.M. Best also has affirmed the \n Financial Strength Rating of A (Excellent) and the Long-Term ICR of “a+” \n of ACMAT’s wholly owned subsidiary, ACSTAR Insurance Company \n (ACSTAR) (Chicago, IL). The outlook for all Credit Ratings (ratings) is \n stable.\n \n \n The rating affirmations reflect ACSTAR’s superior risk-adjusted \n capitalization, sustained underwriting and operating income through the \n construction cycle, conservative business philosophy and proven risk \n management practices. Underwriting income has narrowed in recent years \n as the decline in ACSTAR’s premium base has outpaced the decline in the \n company’s operating expenses. Partially offsetting these positive rating \n factors are ACSTAR’s limited product diversification as a monoline \n provider of surety bonds, the effects of a still somewhat sluggish \n (albeit improving) public construction sector on premiums, and the \n issuance of stockholder dividends primarily to service the debt and \n stock repurchase program of ACMAT.\n \n \n A.M. Best believes upward movement in the ratings at this point is \n unlikely. The ratings are primarily driven by ACSTAR’s history of \n long-term stability in its operating performance and business profile, \n as well as its superior risk-adjusted capitalization. If a material \n change occurs in these metrics, there is a reasonable chance that it \n could cause a negative rating action.\n \n \n This press release relates to Credit Ratings that have been published \n on A.M. Best’s website. For all rating information relating to the \n release and pertinent disclosures, including details of the office \n responsible for issuing each of the individual ratings referenced in \n this release, please see A.M. Best’s Recent \n Rating Activity web page. For additional information \n regarding the use and limitations of Credit Rating opinions, please view Understanding \n Best’s Credit Ratings.\n \n \n A.M. Best is the world’s oldest and most authoritative insurance \n rating and information source. For more information, visit www.ambest.com.\n \n \n Copyright © 2017 by A.M. B...