A.M. Best Affirms Ratings of ACMAT Corporation and ACSTAR Insurance Company
December 18 2014 - 11:04AM
Business Wire
A.M. Best has affirmed the issuer credit rating (ICR) of
“bbb+” of ACMAT Corporation (ACMAT) (Farmington, CT)(Pink
Sheets:ACMTA). A.M. Best also has affirmed the financial strength
rating of A (Excellent) and the ICR of “a+” of ACMAT’s wholly owned
subsidiary, ACSTAR Insurance Company (ACSTAR) (Chicago, IL).
The outlook for all ratings is stable.
The rating affirmations reflect ACSTAR’s strong risk-adjusted
capitalization, sustained underwriting and operating income through
the construction cycle, conservative business philosophy and proven
risk management practices. Underwriting income has narrowed in
recent years as the decline in ACSTAR’s premium base has outpaced
the decline in the company’s operating expenses. Partially
offsetting these positive rating factors are ACSTAR’s limited
product diversification as a monoline provider of surety bonds, the
effects of a still sluggish public construction sector on premiums,
and the issuance of dividends primarily to service the debt and
stock repurchase program of ACMAT.
A.M. Best believes upward movement in the ratings at this point
is unlikely. Negative rating actions could occur if risk-adjusted
capital and/or operating performance fall markedly short of A.M.
Best’s expectations.
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.
Key insurance criteria reports utilized:
- Insurance Holding Company and Debt
Ratings
- Rating Surety Companies
- Risk Management and the Rating Process
for Insurance Companies
- Understanding BCAR for
Property/Casualty Insurers
This press release relates to rating(s) that have been
published on A.M. 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 visit A.M.
Best’s Ratings & Criteria Center.
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 © 2014 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
A.M. BestRobert Valenta, 908-439-2200, ext.
5291Senior Financial
Analystrobert.valenta@ambest.comorGerard Altonji,
908-439-2200, ext. 5626Assistant Vice
Presidentgerard.altonji@ambest.comorChristopher Sharkey,
908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
908-439-2200, ext. 5644Assistant Vice President, Public
Relationsjames.peavy@ambest.com
ACMAT (PK) (USOTC:ACMTA)
Historical Stock Chart
From Sep 2024 to Oct 2024
ACMAT (PK) (USOTC:ACMTA)
Historical Stock Chart
From Oct 2023 to Oct 2024