SEC grants A.M. Best NRSRO status.The following is text of an announcement released Thursday Thursday: see week. , March 3, 2005. A.M. Best Co. Inc. is pleased to announce that today it received notification it has been recognized as a Nationally Recognized Statistical Rating Organization A Nationally Recognized Statistical Rating Organization (or "NRSRO") is a credit rating agency which issues credit ratings that the U.S. Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes. (NRSRO NRSRO Nationally Recognized Statistical Rating Organization ) by the Division of Market Regulation, U.S. Securities and Exchange Commission. A.M. Best began publishing credit ratings in 1999 for corporate debt, preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and commercial paper as a natural extension of its expertise in providing Financial Strength Ratings and evaluations for insurance companies since its founding in 1899. Currently, A.M. Best has over 600 outstanding ratings on securities issued by 129 insurance and 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. entities. In addition, A.M. Best has more than 250 indicative shelf ratings on potential securities issues. As a result of the NRSRO recognition, Best's Credit Ratings may now be used when distinguishing levels of creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. required under numerous federal and state laws. Currently, A.M. Best is one of five rating agencies that carry recognition as an NRSRO. Distinguishing A.M. Best from other NRSRO rating agencies is the company's globally recognized focus on the insurance industry, with Financial Strength Ratings on over 4,500 insurance and reinsurance companies operating in approximately 65 countries. "A.M. Best is extremely pleased to have received this recognition," Arthur Snyder, president and chairman, said. "We believe Best's Credit Ratings provide valuable information to investors and look forward to expanding and enhancing our services to the marketplace." For additional information, visit www.ambest.com/press/nrsro-faq.pdf |
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