ENP Newswire - 28 April 2014
Release date- 25042014 - A.M. Best has placed under review with negative implications the financial strength rating of B++ (Good) and issuer credit rating of 'bbb' of Stonetrust Commercial Insurance Company (Stonetrust) (Baton Rouge, LA).
The rating actions result from disclosure of a proposed transaction under which Dhandho Holdings, LP acquires all of the interests of Stonetrust Commercial Mutual Insurance Holding Company, Stonetrust's parent entity and make a capital investment that would double Stonetrust's capital and surplus.
The ratings will remain under review for as long as the proposed transaction is pursued or closed and the completion of A.M. Best's analysis of the impact the transaction will have on Stonetrust's ratings. The transaction, if finalized, is expected to close in the third quarter of 2014, subject to customary closing conditions, including policyholder and regulatory approval.
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.
A.M. Best's credit ratings are independent and objective opinions, not statements of fact. A.M. Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. A.M. Best's credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.
A.M. Best receives compensation for interactive rating services provided to organizations that it rates. A.M. Best may also receive compensation from rated entities for non-rating related services or products offered by A.M. Best. A.M. Best does not offer consulting or advisory services. For more information regarding A.M. Best's rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the A.M. Best Code of Conduct.
A.M. Best - Europe Rating Services Limited (AMBERS), a subsidiary of A.M. Best Company, is an External Credit Assessment Institutions (ECAI) in the European Union (EU). Therefore, credit ratings issued by AMBERS may be used for regulatory purposes in the EU as per Directive 2006/48/EC.