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A.M. Best Requests Comments on Draft Criteria: Equity Credit for Hybrid SecuritiesOLDWICK, N.J. --(Business Wire)-- A.M. Best Co. is requesting comments from market participants in the insurance industry and other interested parties on the draft criteria report, "Equity Credit for Hybrid Securities" (updates version dated Aug. 26, 2012). Proposed edits to the report include the addition of a new table that serves as a guideline for assigning equity credit to securities, based primarily on the two factors of subordination and time to maturity. This new table replaces the prior exhibit on the debt-equity continuum. Additionally, the proposed edits include removal of references to surplus notes, which are now addressed in separate criteria report. These changes are being made to increase the transparency and market undersanding of how equity credit is assigned to hybrid securities and are part of A.M. Best's continual review of its rating methodology. These changes are not expected to affect ratings. Visit www.ambest.com/ratings/methodology to download a PDF copy of the draft report. Written comments should be submitted by email to [email protected] no later than Feb. 20, 2014. The details of any comments received may be made public unless specifically requested to be kept confidential. Founded in 1899, 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.
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