OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” of ACMAT Corporation (ACMAT) (Farmington, CT) [OTC Market: ACMT]. Concurrently, AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a” of ACMAT’s wholly owned subsidiary, ACSTAR Insurance Company (ACSTAR) (Chicago, IL). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect ACSTAR’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The ratings consider ACSTAR’s strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), management’s niche specialty orientation in the surety sector and prudent underwriting discipline. Partially offsetting these positive rating factors is a decrease in net premiums written in recent years, which has led to diminished underwriting results.
The stable outlooks reflect AM Best’s expectation that risk-adjusted capitalization will remain supportive and that operating results will remain profitable in the near-term.
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