A.M. Best Assigns Debt Rating to Maiden Holdings North America Ltd’s Senior Notes
November 20 2013 - 10:19AM
Business Wire
A.M. Best Co. has assigned a debt rating of “bbb-” to the
issuance of $152.5 million 7.75% senior unsecured notes due
December 2043 to be issued by Maiden Holdings North America
Ltd. (Maiden NA) (Delaware), a direct, wholly owned subsidiary
of Maiden Holdings, Ltd (Maiden Holdings) (Hamilton,
Bermuda) (NASDAQ:MHLD). The outlook assigned is stable. These
senior notes are fully and unconditionally guaranteed by Maiden
Holdings. All remaining ratings of Maiden and its subsidiaries are
unchanged. (For further information, please see A.M. Best’s press
release dated May 24, 2013.)
The proceeds from the issuance will be used to redeem Maiden
Holdings’ outstanding trust preferreds. With the issuance of these
senior notes, Maiden Holdings’ unadjusted debt-to-total capital and
adjusted debt-to-total capital will temporarily increase to 45.1%
and 31.9%, respectively, but will decline after Maiden Holdings
pays down the trust preferred shares in January 2014. Recently,
these measures have trend higher; however, they are within A.M.
Best’s guidelines for the current rating level and will begin to
decline in 2014. In addition, Maiden Holdings’ interest coverage
ratio is expected to remain adequate for the assigned 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.
A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
A.M. Best Company, Inc.Brian O’Larte, 908-439-2200,
ext. 5138Senior Financial
Analystbrian.o'larte@ambest.comorMichael Lagomarsino, CFA,
908-439-2200, ext. 5810Assistant Vice
Presidentmichael.lagomarsoino@ambest.comorRachelle Morrow,
908-439-2200, ext. 5378Senior Manager, Public
Relationsrachelle.morrow@ambest.comorJim Peavy,
908-439-2200, ext. 5644Assistant Vice President, Public
Relationsjames.peavy@ambest.com
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