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Moody’s upgrades Amynta’s credit ratings, outlook stays stable
The upgrade lifts Amynta’s corporate family rating to B2 and cites improving leverage and interest coverage, while Moody’s still flags a significant debt burden and interest expense.
Moody’s Ratings upgraded Amynta Agency Borrower, Inc.’s corporate family rating to B2 from B3, and set a stable outlook. The ratings agency also raised the rating for Amynta’s senior secured revolving credit facility and senior secured term loan to B1 from B2.
Moody’s upgraded the senior unsecured notes rating to Caa1 from Caa2 and moved Amynta’s probability of default rating to B2-PD from B3-PD, citing improving credit metrics. The firm said the change reflects steady operating performance plus stronger leverage and interest coverage, and expects Amynta to keep debt-to-EBITDA at or below current levels.
The review points to Amynta’s expanding managing general agent business and its market presence in US and Canadian warranty products, particularly vehicle service contracts. Moody’s also said the company has reported increased organic revenue, with EBITDA margins improving through acquisitions over the past several years.
Moody’s added that Amynta continues to focus on cost control, streamlining systems, and enhancing data and analytics capabilities. It expects organic revenue growth to continue to moderate ahead, and noted that strengths are offset by Amynta’s significant debt burden and interest expense, along with other challenges including concentration of insurance placements and potential errors and omissions liabilities.