OLDWICK, N.J.--(BUSINESS WIRE)--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.
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