A.M. Best has assigned a financial strength rating of B+ (Good)
and an issuer credit rating of "bbb-" to Bondex Insurance Company (Florham
Park, NJ). The outlook for both ratings is stable.
The assigned ratings for Bondex reflect its adequate capitalization,
acceptable pro forma earnings projections and adherence to strict
underwriting guidelines. The ratings also reflect the company's
experienced management and staff with operational experience in the
surety marketplace with their sister agency, Dale Group, Inc.
Somewhat offsetting these positive factors are the execution risk
associated with starting up a stand-alone insurance company as well as
operational risk associated with insuring contractors with imperfect
credt. The outlook reflects A.M. Best's view that business plans are
reasonable given management's operating assumptions.
While the company is well positioned at its current rating level,
negative rating pressure could occur if operating results and /or
capitalization were to deteriorate.
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.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
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