OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has downgraded the issuer credit rating (ICR) to “bbb” from “bbb+” and affirmed the financial strength rating of B++ (Good) of Western Dental Services, Inc. (WDS) (Orange, CA). The outlook for both ratings is stable.

New Mountain Partners III, L.P., a private equity firm, is the ultimate parent organization of PDS HoldCo Inc. (PDSH). WDS is a wholly owned subsidiary of the holding company, Premier Dental Holdings, Inc. (PDH), which is owned by PDSH.

The rating downgrade is partially due to WDS being the primary source of dividend for its intermediate holding parent. Additionally, A.M. Best remains concerned about the level of PDSH’s financial leverage, recent goodwill impairment and earnings levels, as well as elevated cost of capital as its debt is being serviced primarily by WDS. The organization receives additional capital protection due to restrictions from the California Department of Managed Care; however, PDSH’s highly leverage capital structure continues to place pressure on WDS. Moreover, the organization that holds the debt was recently downgraded based on an anticipated non-compliance with its financial covenant to the debt term as of March 2015 requiring an equity cure from its sponsor in support of its operations. The rating downgrade was also due to the company’s decrease in earnings and an increase in its leverage ratio. The rating downgrade also factors in WDS’s recent decline in operating performance on its core business, its high level of bad debt expense and geographic concentration in the state of California, which continues to face reimbursement pressures. Future earnings pressure is anticipated due to growth from expansion of the adult dental coverage under the state’s DentiCal program, which has lower reimbursement rates. Furthermore, A.M. Best believes that WDS will be challenged to sustain its historic operating performance due to growth in lower margin business, increasing competition, as well as increased expense strain associated with revenue growth in opening De Novo offices.

Offsetting these factors are WDS’s adequate risk-adjusted capital levels, which remain supportive of the ratings, long-standing market presence and conservative investment risk profile. WDS enjoys a strong market niche derived from its unique business structure tailored to low-middle income individuals with in-house financing capabilities. WDS continues to invest in its information technology infrastructure with full consolidation and centralization of core functions, as well as a multi-tiered collections process focused on immediate collections from members.

Following the downgrade, A.M. Best believes a positive rating movement for WDS is unlikely in the near to medium term. Key factors that could result in a negative pressure on the ratings include deterioration in operating performance; increase in financial leverage at PDSH or material decline in risk-adjusted capital levels. Additionally, increase in bad debt expense, further impairment of PDSH’s goodwill or additional concern over meeting its debt covenants would place added pressure on WDS’s ratings.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Evaluating Non-Insurance Ultimate Parents
• Rating Members of Insurance Groups

• Risk Management and the Rating Process for Insurance Companies
• Understanding BCAR for U.S. and Canadian Life/Health Insurers

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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A.M. Best Company, Inc.

Jennifer Afriyie, 908-439-2200, ext. 5203

Financial Analyst

[email protected]

or

Joseph Zazzera, MBA, 908-439-2200, ext. 5797

Assistant Vice President

[email protected]

or

Christopher Sharkey, 908-439-2200, ext. 5159

Manager, Public Relations

[email protected]

or

Jim Peavy, 908-439-2200, ext. 5644

Assistant Vice President, Public Relations

[email protected]

Source: A.M. Best Company, Inc.

CEDAR RAPIDS — A Cedar Rapids man is accused of theft and insurance fraud after investigators said he submitted life insurance claims for three children whose deaths could not be substantiated.

Thompson Nagbe Jr., 37, made two fraudulent life insurance claims on policies he enrolled in through his employer, according to a Linn County criminal complaint.

Nagbe initiated a claim May 6, 2024, for death benefits for his daughter, Comfort Nagbe, who he said died in a motorcycle accident in Liberia, according to the fraud bureau of the Iowa Department of Insurance and Financial Services. The $30,000 claim was approved and paid to Nagbe one month later.

Then, on June 10, 2025, Nagbe submitted claims for the deaths of his twin children, Gifty and Victor Nagbe, who — according to Nagbe — died in a motor vehicle accident.

An investigation determined those death claims were fraudulent, and death benefits were not paid, according to the criminal complaint.

A subsequent investigation concluded that Nagbe submitted fraudulent death certificates for all three children, and none of the deaths could be verified. Also, investigators said Nagbe made numerous inconsistent statements to a fraud investigator regarding the circumstances of the children's deaths.

Nagbe faces charges of first-degree theft, a Class C felony, and two counts of insurance fraud-presenting false information, Class D felonies. A $20,000 surety bond was posted Thursday for Nagbe's release from the Linn County Jail, according to court records.

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