A.M. Best Assigns Ratings To Maiden Stock
Ratings agency A.M. Best Co. has assigned a debt rating of “bb” to the forthcoming issuance of $150 million 7.25% mandatory convertible preferred stock due September 2016 to be issued by Maiden Holdings Ltd. The outlook assigned is stable. All remaining ratings of Maiden and its subsidiaries are unchanged.
A statement from the ratings agency said, “The proceeds from the issuance will be used in the continued support and development of Maiden’s reinsurance business and for other general corporate purposes. With the issuance of these preferred shares, Maiden’s unadjusted debt-to-total capital and adjusted debt-to-tangible capital are 45% and 27%, respectively. Although these measures are trending higher, they are within A.M. Best’s guidelines for its current rating level. In addition, Maiden’s interest coverage ratio is expected to remain adequate for its rating.”
Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007.
