Moody's: Amynta unchanged on loan add-on

Moody's Investors Service said it is maintaining the B3 corporate family rating and B3-PD probability of default rating of Amynta Agency Borrower, Inc. following news that the company plans to borrow an incremental $125 million under its senior secured first-lien term loan.

The loan has a B2 rating.

The proceeds will be used to help fund acquisitions and pay related fees and expenses, Moody's said.

The outlook is stable.

The ratings reflect the company's growing market presence in U.S. warranty products, particularly vehicle service contracts, Moody's said.

Amynta has generated good EBITDA margins historically. Although the company designs its coverage and service contracts and provides claims administration, it does not bear underwriting risk, the agency said.

These strengths are offset by the substantial debt burden Amynta assumed when it was carved out from AmTrust Financial Services, Inc., Moody's said, and by the cash requirements of the related reorganization plan.

Other credit challenges include the company's limited size and the high concentration of its insurance placements with AmTrust, the agency said.

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