A.M. Best Assigns Issuer Credit Rating to Global Indemnity Limited and Issue Credit Rating to Its New Subordinated Note Offer...
March 20 2017 - 7:39PM
Business Wire
A.M. Best has assigned a Long-Term Issuer Credit Rating
of “bbb” to the newly created Global Indemnity Limited
(Global Indemnity) (Cayman Islands) (NASDAQ:GBLI), replacing
Global Indemnity Unlimited Company (Global Unlimited)
(Dublin, Ireland) as the ultimate parent of Global Indemnity
Reinsurance Company Ltd. and its U.S. subsidiaries. A.M. Best
also has assigned a Long-Term Issue Credit Rating (Long-Term IR) of
“bbb-” to the $120 million 7.875% subordinated notes due 2047; and
$100 million 7.75% subordinated notes due 2045 of Global Indemnity.
Additionally, A.M. Best has assigned indicative Long-Term IRs of
“bbb” to senior unsecured debt, “bbb-” to subordinated debt and
“bb+” to the preferred stock of Global Indemnity’s shelf
registration. The outlook assigned to these Credit Ratings
(ratings) is stable. All remaining ratings of Global Indemnity and
its subsidiaries are unchanged.
In November 2016, Global Indemnity was formed, acting as the
ultimate parent for the group. Global Indemnity is domesticated in
the Cayman Islands and was formed to replace the group’s former
parent, Global Unlimited, domiciled in Dublin, Ireland. Global
Unlimited is essentially a dormant shell and is in the process of
being dissolved. As a result, A.M. Best has withdrawn the Long-Term
ICR of “bbb” of Global Unlimited. Also, A.M. Best has withdrawn the
indicative Long-Term IRs on the previous shelf registration from
Global Unlimited and the Long-Term IR of $100 million 7.75%
subordinated notes due 2045.
The proceeds from the issuance will be used for general
corporate purposes. With the issuance of the subordinated notes,
Global Indemnity’s adjusted debt-to-total capital and adjusted
debt-to-tangible capital are each approximately 20%, and both
ratios are within A.M. Best’s guidelines for its current rating
level. In addition, Global Indemnity’s interest coverage ratio is
expected to remain satisfactory for its ratings.
This press release relates to Credit Ratings 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 see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20170320006318/en/
A.M. BestJieqiu Fan, +1 908-439-2200, ext.
5372Senior Financial
Analystjieqiu.fan@ambest.comorDaniel Ryan, +1 908-439-2200,
ext. 5325Senior
Directordaniel.ryan@ambest.comorChristopher Sharkey, +1
908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy, +1
908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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