A.M. Best Assigns Debt Rating to National General Holdings Corp. Forthcoming Preferred Share Offering
OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a debt rating of “bb” to the forthcoming $55 million 7.5% non-cumulative perpetual preferred stock of National General Holdings Corp. (National General) (headquartered in New York, NY) (NASDAQ:NGHC). The outlook assigned to the rating is stable. All remaining ratings of National General and its subsidiaries are unchanged. (Please see A.M. Best’s press release dated May 30, 2014.)
The proceeds from the issuance will be used in continued support and development of National General’s business and for other general corporate purposes. With the issuance of the preferred shares, National General’s adjusted debt-to-total capital and adjusted debt-to-tangible capital are approximately 26% and 30%, respectively, and are within A.M. Best’s guidelines for its current rating level. In addition, National General’s interest coverage ratio is expected to remain solid for this rating.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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