A Lower Credit Rating isn't a good Thing
When we get surety bonds for our clients, we tend to only use the best surety bond providers possible. One of the major ratings agencies is A.M. Best. The reason that we get only good carriers (A rated is what we prefer) is that we do not want to stick our clients with a surety agency that goes under. When that happens, it dramatically slows down any payments, which really hurts our clients ability to get good jobs.
A.M. Best has placed under review with negative implications the financial strength rating of C (Weak) and the issuer credit rating of “ccc” of Newport Bonding and Surety Company (Newport) (Hato Rey, PR).
The under review status reflects the significant uncertainty regarding Newport’s overall financial condition as it has not yet filed its year-end 2014 annual statement. The ratings will remain under review pending A.M. Best’s receipt of the annual statement, as well as discussions with management to determine the underlying reasons for the delay in filing. Upon receipt, A.M. Best will review the financial condition of Newport and determine whether its current ratings are appropriate.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
• Rating Surety Companies
• Risk Management and the Rating Process for Insurance Companies
• Understanding BCAR for Property/Casualty Insurers
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.