AM Best Removes Ratings of Louisiana’s Gray Casualty & Surety from Under Review
AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of The Gray Casualty & Surety Co. (GCSC), based in Metairie, Louisiana.
The outlook assigned to the ratings is stable.
Gray Surety, established 2003, provides surety bonds to emerging and mid-market contractors. Gray Surety partners with professional bond agents to provide responsible surety bond options across the country. The Gray Surety team also underwrites commercial bonds related to licenses, permits, and other regulatory requirements.
The ratings reflect GCSC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings were placed under review with developing implications following the announcement that a group of investors led by Bernhard Capital Partners Management LP entered into an agreement to make a significant investment in GCSC.
The ratings actions follow the completion of the agreement and subsequently, AM Best’s assessment of the financial and operational impacts of the partnership, discussions with management and evaluation of the implications for GCSC going forward.
The stable outlooks reflect AM Best’s expectation that GCSC will maintain very strong balance sheet strength and profitable operating results over the intermediate term.
Gray Surety has offices in Louisiana, Texas, Mississippi, Alabama, and Arizona.