AM Best Assigns Issue Credit Rating to Hallmark Financial Services, Inc.’s New Senior Unsecured Notes

OLDWICK, N.J.--()--AM Best has assigned a Long-Term Issue Credit Rating of “bbb-” to the $50 million 6.25% 10-year senior unsecured notes due August 2029 issued by Hallmark Financial Services, Inc. (Hallmark Financial) (headquartered in Dallas, TX) [NASDAQ: HALL]. The outlook assigned to this Credit Rating (rating) is stable. The existing ratings of Hallmark Financial and its subsidiaries are unchanged.

AM Best expects Hallmark Financial to use the proceeds from this offering to retire the $30 million outstanding under its revolving credit facility. Following this issuance, AM Best expects Hallmark Financial’s debt-to-total capital and adjusted debt-to-tangible capital measures to remain within AM Best’s guidelines for its current rating level. In addition, AM Best expects Hallmark Financial’s interest coverage ratio to remain adequate for its ratings.

Hallmark Financial is a diversified property/casualty insurance group offering commercial and personal insurance to businesses and individuals in specialty and niche markets. The insurance subsidiaries generate earnings and steady cash flows to the holding company, supporting its cash position and interest coverage metrics.

This press release relates to Credit Ratings that have been published on AM 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 AM 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. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Daniel Mangano
Financial Analyst
+1 908 439 2200, ext. 5547
daniel.mangano@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jacqalene Lentz, CPA
Director
+1 908 439 2200, ext. 5762
jacqalene.lentz@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Contacts

Daniel Mangano
Financial Analyst
+1 908 439 2200, ext. 5547
daniel.mangano@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jacqalene Lentz, CPA
Director
+1 908 439 2200, ext. 5762
jacqalene.lentz@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com