A.M. Best has assigned a Long-Term Issuer Credit Rating of “bbb” to the newly created Global Indemnity Limited (Global Indemnity) (Cayman Islands) (NASDAQ:GBLI), replacing Global Indemnity Unlimited Company (Global Unlimited) (Dublin, Ireland) as the ultimate parent of Global Indemnity Reinsurance Company Ltd. and its U.S. subsidiaries. A.M. Best also has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb-” to the $120 million 7.875% subordinated notes due 2047; and $100 million 7.75% subordinated notes due 2045 of Global Indemnity. Additionally, A.M. Best has assigned indicative Long-Term IRs of “bbb” to senior unsecured debt, “bbb-” to subordinated debt and “bb+” to the preferred stock of Global Indemnity’s shelf registration. The outlook assigned to these Credit Ratings (ratings) is stable. All remaining ratings of Global Indemnity and its subsidiaries are unchanged.
In November 2016, Global Indemnity was formed, acting as the ultimate parent for the group. Global Indemnity is domesticated in the Cayman Islands and was formed to replace the group’s former parent, Global Unlimited, domiciled in Dublin, Ireland. Global Unlimited is essentially a dormant shell and is in the process of being dissolved. As a result, A.M. Best has withdrawn the Long-Term ICR of “bbb” of Global Unlimited. Also, A.M. Best has withdrawn the indicative Long-Term IRs on the previous shelf registration from Global Unlimited and the Long-Term IR of $100 million 7.75% subordinated notes due 2045.
The proceeds from the issuance will be used for general corporate purposes. With the issuance of the subordinated notes, Global Indemnity’s adjusted debt-to-total capital and adjusted debt-to-tangible capital are each approximately 20%, and both ratios are within A.M. Best’s guidelines for its current rating level. In addition, Global Indemnity’s interest coverage ratio is expected to remain satisfactory for its ratings.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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