A.M. best has affirmed Waste Management’s captive’s financial strength rating of “A- (Excellent)” and its long-term issuer credit rating of “a-”.
The ratings of the captive, National Guaranty Insurance Company, reflect its risk-adjusted capitalisation, operating performance and liquidity positions, as well as its risk management strategy and practices and operational control of its parent, Waste Management.
According to A.M. Best, partially offsetting these positive rating factors is the fact that a large percentage of the captive’s surplus is loaned back to Waste Management, supported by a 24-hour demand note.
However, the ratings agency also noted that the Vermont Department of Financial Regulation monitors capital levels of National Guaranty Insurance Company.
A.M. Best said: “The company’s ratings and outlooks are not expected to be upgraded within the next 12 to 24 months as the company’s operating performance and capital position have already been considered in the ratings process.”
