OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has upgraded the Long Term Issuer-Credit Rating to “ccc-”
from “cc” and affirmed the Financial Strength Rating of C- (Weak) of
Friday Health Plans of Colorado, Inc. (Friday Health) (Alamosa, CO). The
outlook of these Credit Ratings have been revised to stable from
negative.
The ratings reflect Friday Health’s balance sheet strength, which AM
Best categorizes as very weak, as well as its marginal operating
performance, limited business profile and weak enterprise risk
management.
Friday Health’s absolute capital and quality of capital improved through
the conversion of $3.2 million of surplus notes to paid-in capital and
additional capital contributions of $2 million. Risk-adjusted
capitalization at year-end 2018 was above statutory minimum, due in part
to a decline in revenue as well as the aforementioned increase in
capital.
Following years of net losses, Friday Health reported net income for
2018 driven by favorable prior year risk adjustment payment for
Affordable Care Act members and rate increases on non-performing group
business.
The upgrade of the Long-Term ICR reflects the improvement of
risk-adjusted capitalization and the company’s continued focus on
profitability and operational improvements. However, due to lack of size
and scale, as well as deficiencies in its enterprise risk management
practices, Friday Health could exhibit volatility in its financial
performance, as seen in prior years’ results.
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 Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Bridget Maehr
Associate Director
+1 908 439
2200, ext. 5321
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Doniella Pliss
Associate Director
+1 908 439
2200, ext. 5104
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
