OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has assigned a debt rating of "a-" to the new issuance of $300
million 6.3% 10-year senior unsecured notes of HCC Insurance Holdings, Inc.
(HCC) (headquartered in Houston, TX) [NYSE: HCC]. The assigned outlook is
positive. Proceeds from the current offering will be used to repay outstanding
indebtedness under HCC`s revolving loan facility.
At September 30, 2009, HCC`s unadjusted debt to capital stood at 13%,
comfortably within the acceptable parameters that A.M. Best has established for
companies at a similar rating level. While this figure is expected to
temporarily rise to near 20% immediately following the debt issuance, A.M. Best
expects HCC`s financial leverage to return to current levels when the net
proceeds are used to retire the existing credit facility indebtedness.
Given the strong risk-adjusted capitalization of HCC and its subsidiaries, the
solid earnings performance through third quarter 2009 with $269.1 million in net
income generated, and the equally favorable earnings outlook, A.M. Best believes
HCC is well positioned to achieve its financial objectives in 2009. A.M. Best
also expects the company will continue to benefit from maintaining considerable
financial flexibility.
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.
A.M. Best Company
Analysts:
David S. Blades, CPCU, 908-439-2200, ext. 5422
david.blades@ambest.com
or
Daniel Ryan, 908-439-2200, ext. 5325
daniel.ryan@ambest.com
or
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
Copyright Business Wire 2009
