A.M. Best Assigns Indicative Ratings to Argo Group International Holdings, Ltd.’s Shelf Registration

OLDWICK, N.J.-(Business Wire)-September 29, 2009 - A.M. Best Co. has assigned indicative debt ratings of “bbb” to senior unsecured debt, “bbb-” to subordinated debt and “bb+” to preferred stock, which may be issued under the Argo Group International Holdings, Ltd.’s (Argo Group) (Hamilton, Bermuda) (NASDAQ: AGII) recently filed and approved shelf registration statement.

In addition, A.M. Best has assigned an indicative rating of “bb+” to the preferred securities under the shelf registration of Argo Group Statutory Trust. The outlook assigned to all ratings is stable.

All proceeds from the sale of the trust preferred securities will be used to purchase debt securities from Argo Group. The net proceeds from the sale of securities will be used principally for working capital to support the continued growth of the group’s insurance operations.

Argo Group’s unadjusted debt-to-total capital ratio is 20.6% at June 30, 2009 (U.S. GAAP). The financial leverage and coverage ratios remain well within A.M. Best’s guidelines for its debt ratings and are expected to remain as such over the near term.

Argo Group’s issuer credit rating of “bbb” is unchanged, as are the financial strength and issuer credit ratings of its insurance operating subsidiaries.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

Send this news item to a friend.

Print This Page