A.M. Best Comments on Ratings of Quanta Capital Holdings Ltd. Following Its Decision to Place Subsidiaries in Run-Off.OLDWICK, N.J. -- A.M. Best Co.'s financial strength ratings (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of B++ (Very Good), issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "bbb" for the insurance/reinsurance subsidiaries of Quanta quan·ta n. Plural of quantum. Capital Holdings Ltd. (Quanta) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : QNTA) (Hamilton, Bermuda) and the debt rating of "b+" on Quanta's $75 million 10.25% Series A non-cumulative perpetual preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. remain under review with negative implications. This decision follows Quanta's announcement that its board of directors has decided to place its insurance/reinsurance subsidiaries in run-off. The Lloyd's Syndicate and the environmental consulting business, ESC See escape character and escape key. See also ESC/P. ESC - escape , are to remain in operation. The ratings were placed under review on March 2, 2006 following the reporting of the company's year-end 2005 financial results, which were lower than expected. Following the rating action on March 2, 2006, A.M. Best left the ratings under review until a revised business plan could be reviewed. A.M. Best will now need to review the ratings based on the planned run off. A.M. Best expects to complete this review process soon. The FSRs of B++ (Very Good) and the ICRs of "bbb" remain under review with negative implications for the following insurance/ reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. subsidiaries of Quanta Capital Holdings Ltd: --Quanta Reinsurance Ltd. --Quanta Europe Ltd. --Quanta Indemnity Company --Quanta Reinsurance U.S. Ltd. --Quanta Specialty Lines Insurance Company For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit www.ambest.com/reinsurance. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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