Fitch Ratings has affirmed the ‘A-‘ insurer financial strength (IFS) ratings of Imagine Insurance Company Limited (Imagine) and Imagine International Reinsurance Limited with stable outlooks. “The affirmations reflect Imagine’s good operating results, historically strong capital formation rate, and the continued majority ownership of Imagine by Brookfield Asset Management,” said Fitch. The rating agency also said it considers Imagine to be a strategic subsidiary of Brookfield, and noted that it “has grown its equity capital to more than $600 million from $200 million since inception in 2000 through retained earnings and capital contributions.”
Standard & Poor’s Ratings Services has raised its rating on Amerigroup Corp.’s (AGP) senior secured bank facility to ‘BB+’ from ‘BB’. S&P also assigned it a ‘2’ recovery rating, “indicating our expectation for a substantial (70 percent-90 percent) recovery in the event of a payment default scenario.” However, S&P has lowered its rating on AGP’s senior unsecured convertible notes to ‘B+’ from ‘BB’, and assigned a ‘6’ recovery rating to this debt, “indicating the expectation for a negligible (0 percent-10 percent) recovery in the event of a payment default scenario.” S&P noted: “The senior secured bank facilities consist of a $50 million revolving credit facility and a $130 million synthetic letter of credit facility due March 2012. The principal amount of the convertible senior unsecured notes is $260 million, maturing May 2012. AGP used the proceeds mainly to post a bond to stay the enforcement of a judgment in Qui Tam litigation pending the resolution of an appeal by the company and its Illinois subsidiary. As of March 2008, the company had drawn $102.5 million from the senior secured facility and nothing from the revolver.”
A.M. Best Co. has removed from under review with negative implications and affirmed the financial strength rating (FSR) of ‘A+’ (Superior) and issuer credit ratings (ICR) of “aa-” of American Modern Insurance Group of Amelia, Ohio and its P/C members. At the same time Best removed from under review with negative implications and affirmed the ICR of “a-” of American Modern’s parent, The Midland Company, and removed from under review with negative implications the $150 million shelf registration of Midland. All the above ratings have been assigned a stable outlook. Subsequently Best withdrew the ICR and shelf registration of Midland as it is no longer a publicly traded entity. “These rating actions follow the acquisition of Midland by Munich-American Holding Company (Munich), which was completed on April 3, 2008,” Best explained.
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