A.M. Best Downgrades Ratings of Pathfinder Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has downgraded the financial strength rating to B+ (Good) from A- (Excellent) and issuer credit rating to “bbb-” from “a-” of Pathfinder Insurance Company (Pathfinder) (Denver, CO). The outlook for both ratings has been revised to negative from stable.

These ratings reflect Pathfinder’s strong capitalization, as reflected in its very high Best’s Capital Adequacy Ratio (BCAR), conservative leverage and operating strategies and its historically high profitability.

Partially offsetting these positive rating factors are the company’s limited scope of business and its dependence on its ultimate parent, Avis Budget Group, Inc. (Avis Budget) (headquartered in Parsippany, NJ) [NYSE: CAR], for business generation. Pathfinder continues to have minimal losses due to the structure of coverage provided by Avis Budget and its strict risk management program.

The ratings consider Pathfinder’s strategic value in providing automobile liability insurance for a portion of Avis Budget’s corporately owned rental fleets. The downgrades also recognize the overall financial and credit ratings of Avis Budget.

A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world.

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

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

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.

A.M. Best Company
Analysts
Fred Eslami, 908-439-2200, ext. 5406
fred.eslami@ambest.com
or
Steven Chirico, CPA, 908-439-2200, ext. 5087
steven.chirico@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Source: A.M. Best Company