AM Best Assigns Issue Credit Rating to United Fire Group, Inc.'s New Senior Unsecured Notes
AM Best has assigned a Long-Term Issue Credit Rating of "bbb-" (Good) to recently issued $70 million, 9% senior unsecured notes due May 31, 2039, of United Fire Group, Inc. (UFG) (Cedar Rapids, IA) (NASDAQ:UFCS). The outlook assigned to this Credit Rating (rating) is stable.
Concurrently, AM Best has withdrawn the indicative rating on the previously forthcoming debt following confirmation that the note has been issued. The existing ratings of UFG and its insurance subsidiaries remain unchanged. UFG's adjusted financial leverage and earnings before interest, and taxes coverage are within acceptable ranges for its current ratings.
AM Best notes that UFG manages its financial leverage to a modest level and that cash flow, capitalization and operating results are expected to be in line with expectations over the near term.
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