AM Best Downgrades Issuer Credit Rating of ACMAT Corporation and ACSTAR Insurance Company
AM Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb” from “bbb+” of ACMAT Corporation
(ACMAT) (Farmington, CT) [OTC Market: ACMT]. Concurrently, AM Best has downgraded the Long-Term ICR to “a” from “a+” and affirmed
the Financial Strength Rating (FSR) of A (Excellent) of ACMAT’s wholly owned subsidiary, ACSTAR Insurance Company (ACSTAR)
(Chicago, IL). The outlook of the Long-Term ICRs has been revised to stable from negative, while the outlook of the FSR remains
stable.
The Credit Ratings (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 rating actions are based on a material reduction in ACSTAR’s premiums in recent years, which has led to a diminished
business profile. In addition, while results have historically benefited from management’s niche specialty orientation in the
surety sector, prudent underwriting discipline and a conservative loss reserving philosophy, the decline in premiums has resulted
in narrowed underwriting results in recent years. The negative trend in premiums partly reflects highly competitive market
conditions in the niche.
Negative rating actions could occur if operating results show a negative trend or if risk-adjusted capitalization materially
weakens.
This press release relates to Credit Ratings that have been published on AM 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 see AM Best’s
Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions,
please view
Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press
releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit
www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Robert Valenta
Senior Financial Analyst
+1 908 439 2200, ext. 5291
robert.valenta@ambest.com
Raymond Thomson, CPCU, ARe, ARM
Director
+1 908 439 2200, ext. 5621
raymond.thomson@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com
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