AM Best rates Ascot senior unsecured notes

AM Best has assigned a long term issue credit rating of “bbb” to the $400 million, 4.25 percent fixed rate senior unsecured notes due 2030, issued by Ascot Group (Bermuda) on December 15, 2020.

The outlook for the rating is positive.

Ascot intends to downstream the proceeds to its US insurance operating subsidiaries – Ascot Insurance Company and Ascot Specialty Insurance Company. The proceeds will provide additional capital and support the growth of these operations, allowing them to benefit from favourable insurance market conditions.

The rating of the senior notes is three notches below the long term issuer credit ratings of Ascot Bermuda, Ascot Insurance Company and Ascot Specialty Insurance Company. AM Best said this is because the notes are issued by their non-operating holding company.

The notes represent senior unsecured obligations of the issuer and will rank equally in right of payment with any future unsecured, unsubordinated indebtedness and senior in right of payment to any future unsecured subordinated indebtedness. They are contractually subordinated in right of payment to all obligations of Ascot Group (Bermuda) subsidiaries, including existing and future policyholder obligations of insurance and reinsurance subsidiaries.