A.M. Best Downgrades Rating Of National Guaranty.OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 8, 1999-- A.M. Best Co. today downgraded the rating of National Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Insurance Co., Burlington, Vt., to B+ (Very Good) from A- (Excellent). The action reflects issues at the captive's parent company, Waste Management Inc., that have resulted in reduced financial flexibility and hampered debt-reduction efforts. Waste Management has been hindered by significant earnings adjustments that are a result of reported accounting irregularities and by management upheaval following the July 1998 merger between Waste Management Inc. and USA Waste Services Inc. A.M. Best will keep the rating under review with developing implications pending the outcome of the parent company's attempts to obtain permanent amendments to its bank credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities to allow for a revision of financial covenants and the sale of assets and pending the resumption of historical profits. Recent discussions with the parent indicate an increasing rate of lender acceptance of the proposed amendments and reasonably high expectation for achieving successful assets sales. Waste Management anticipates significant debt reduction by the end of the second quarter 2000 provided the asset sales are completed. The rating remains Secure due to the favorable overall risk characteristics of the solid waste services industry and the combined company's commanding market position. Additionally, Waste Management has adopted a strategic plan to refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. on their operations in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. solid waste business, sell international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and other nonstrategic assets, reduce debt and improve the company's credit profile. As such, Waste Management expects stronger operating results next year. A.M. Best views positively the recent additions to senior executive management. National Guaranty's financial strength is closely tied to the parent's, as it was established to meet the parent's financial assurance obligations under Subtitle sub·ti·tle n. 1. A secondary, usually explanatory title, as of a literary work. 2. A printed translation of the dialogue of a foreign-language film shown at the bottom of the screen. tr.v. D of the Resource Conservation and Recovery Act The Resource Conservation and Recovery Act (RCRA), enacted in 1976, is a Federal law of the United States contained in 42 U.S.C. §§6901-6992k. It is usually pronounced as "rick-rah" or "Wreck-rah. . Waste Management continues its efforts to rebuild and restore confidence internally as well as in the credit and equity markets. A.M. Best will closely monitor further developments at Waste Management and National Guaranty through ongoing discussions with Waste Management; a review is expected to be completed in the second quarter of 2000. National Guaranty ranks among the top 100 writers of Surety and Fidelity coverages based on 1998 direct premiums written. The former rating was placed under review following the August 1999 announcement of an overstatement o·ver·state tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states To state in exaggerated terms. See Synonyms at exaggerate. o of previously released earnings and senior management resignations at the parent company. 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion