A.M. Best Assigns Ratings to Waco Fire and Casualty Insurance Company.

OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating (FSR) of B+ (Good) and an issuer credit rating (ICR) of "bbb-" to Waco Fire and Casualty Insurance Company (Waco) (Atlanta, GA). The outlook assigned to both ratings is stable.

The ratings and outlook reflect Waco's solid risk-adjusted capitalization and management's near-term projections, which call for continued modest operating profits and capital accumulation, and sound liquidity. The ratings also reflect the expectation that management will operate in the manner that is consistent with the business plan presented to A.M. Best.

The positive rating factors are partially offset by the execution risk of successfully implementing management's business plan, especially during a time of increasing competitive pressures, and narrow geographic and product spread of risk (exposing the group to changes in regulatory, legislative and competitive landscape) as well as the company's elevated common stock leverage.

Waco, a subsidiary of Watkins Associated Industries, Inc., is principally engaged in providing insurance coverages to associated entities, including commercial auto liability, auto physical damage, cargo, employment practices liability, general liability, bobtail and renters' insurance. In addition, through its relationship with a managing general agency, the company began providing private passenger auto coverage to non-standard clients within the State of Georgia in 2007.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

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.