Abstract: A.M. Best Co. assigned financial insurance ratings and issuer credit ratings to Penn Treaty American Corporation and its' subsidiary companies. But, almost all of these ratings were downgraded later by A.M. Best Co.
Penn Treaty American Corporation Ratings present an overall picture of the financial condition of Penn Treaty American Corporation. These ratings are provided by A.M. Best Co., the reputed insurance rating company.
The Insurance Ratings received by Penn Treaty American Corporation and its' subsidiary companies are the following:
Penn Treaty American Corporation received “b” in its' Issuer Credit Rating. But, later, A.M. Best downgraded this rating to the level of “b-”.
The insurance subsidiaries of Penn Treaty American Corporation got “bb+” in Issuer Credit Rating. But, later this rating was downgraded to the level of “bb”, by A.M. Best Co.
These subsidiary companies of Penn Treaty American Corporation received B in its' Financial Strength Rating.
It should be mentioned here, that the insurance subsidiaries of Penn Treaty American Corporation are American Network Insurance Company, Penn Treaty Network America Insurance Company and American Independent Network Insurance Company.
Penn Treaty American Corporation and the subsidiary companies experienced down gradation of ratings because of the following facts:
Penn Treaty American Corporation made repeated delays in releasing its' Generally Accepted Accounting Principals (GAAP) financial statements.
The total audit process of the company was delayed and it generated uncertainties.
Penn Treaty American Corporation changed its' auditors.
The subsidiary companies of Penn Treaty American Corporation generated statutory losses instead of securing adequate level of risk-adjusted capitalization.
Penn Treaty American Corporation can experience another phase of down gradation of ratings, after completion of the audit process. The ratings already assigned to Penn Treaty American Corporation and its' subsidiary companies, are under review. If the audit reveals facts, which can negatively impact the capital base of the companies, then the ratings may be further downgraded.