AM Best Places Credit Ratings of Homesteaders Life Company Under Review With Negative Implications
These Credit Ratings (ratings) have been placed under review with negative implications following the recent announcement that an affiliate of Homesteaders,
With the PLC transaction, Homesteaders gains access to over 250 cemeteries, crematoria, funeral homes, chapels and event centers that PLC owns and operates throughout
Although the transaction will provide Homesteaders with growth opportunities and diversify its operations through access to the at-need segment, the investment is sizeable relative to the company’s balance sheet. Financial leverage will be significantly elevated until the preferred shares are converted and there is complexity in executing the transaction. Homesteaders’ ratings will remain under review with negative implications pending successful execution of the transaction and until AM Best can properly assess the company’s rating fundamentals, both financially and operationally, given this transaction.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings . For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments .
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Source: AM Best