|[April 25, 2014]
A.M. Best Places Ratings of Stonetrust Commercial Insurance Company Under Review With Negative Implications
OLDWICK, N.J. --(Business Wire)--
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 ransaction 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. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS
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