A.M. Best has assigned an issue rating of “bb+” to the $125 million, 7.75% non-cumulative perpetual preferred stock Series E recently announced by AmTrust Financial Services, Inc. (AFSI) (headquartered in New York, NY) [NASDAQ:AFSI]. The outlook assigned to the rating is stable. The offering may be increased upon exercise of an underwriters’ overallotment.

Proceeds from the issuance of the securities will be used for general corporate purposes. AFSI is in the process of completing several acquisitions, including those of N.V. Nationale Borg-Maatschappij, Republic Companies, Inc. and Genworth Financial Mortgage Insurance Limited, which are expected to close in the first half of 2016.

AFSI’s financial leverage and fixed cost coverage ratios will remain within A.M. Best’s guidelines for the rating following issuance of these securities.

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