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A.M. Best Assigns Indicative Rating to Hallmark Financial Services Inc.'s New Shelf Registration

June 23, 2014



ENP Newswire - 23 June 2014

Release date- 20062014 - A.M. Best has assigned an indicative rating of 'bbb-' to the senior unsecured debt of the recently filed shelf registration of Hallmark Financial Services Inc. (Hallmark Financial) (Nevada).

The outlook assigned to the rating is negative. All remaining ratings of Hallmark Financial and its subsidiaries are unchanged.

As of today, the shelf is registered for senior unsecured debt only. As per A.M. Best's methodology (Insurance Holdings Company and Debt Ratings) the debt receives zero notching from the issuer credit rating of Hallmark Financial.

Effective June 9, 2014, Hallmark Financial filed a shelf registration for a senior unsecured debt at a proposed maximum aggregate offering price of $30 million. Due to potential issuance of this new debt, Hallmark Financial's debt-to-total capital and adjusted debt-to-tangible capital measures have increased, but continue to remain within A.M. Best's guidelines for its current rating level. In addition, Hallmark Financial's interest coverage ratio is expected to remain adequate for its ratings.

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 http://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.

A.M. Best receives compensation for its rating services from the organizations that it rates, unless such ratings are identified with a Public Data modifier ('pd'). Public Data ratings are based on information available in the public domain and indicate the more limited scope of the rating and the fact that the company did not initiate the rating. A.M. Best does not send entities assigned a 'pd' rating an invoice for its rating services and does not assign ratings to securities issued by companies assigned a Best's 'pd' rating. 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 Company and its subsidiaries are not registered as External Credit Assessment Institutions (ECAI) in the European Union (EU). Credit ratings issued by A.M. Best Company and its subsidiaries can not be used for regulatory purposes in the EU as per Directive 2006/48/EC.

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.


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Source: ENP Newswire


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