OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a debt rating of “bb+” to the forthcoming $80 million 7.625% non-cumulative perpetual preferred stock of AmTrust Financial Services Inc. (AmTrust) (headquartered in New York, NY) [NASDAQ:AFSI]. The outlook assigned to the rating is stable. All remaining ratings of AmTrust and its subsidiaries are unchanged. (Please see related A.M. Best’s press release dated May 30, 2014 here.)
The proceeds from the issuance will be used for the continued support and development of AmTrust’s business and other general corporate purposes. With the issuance of the preferred shares, AmTrust’s adjusted debt-to-total capital and adjusted debt-to-tangible capital are approximately 22% and 30%, respectively, and are within A.M. Best’s guidelines for its current rating level. In addition, AmTrust’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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