A.M. Best Affirms Credit Ratings of The American Road Insurance Company

A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" of The American Road Insurance Company (TARIC) (Dearborn, MI). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect TARIC's balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

TARIC is a single parent, or pure, captive insurer wholly owned by Ford Motor Credit Company, LLC (Ford Credit), which in turn is an indirect wholly owned subsidiary of Ford Motor Company (Ford) F. TARIC provides a variety of coverages to Ford and its subsidiaries in the United States and Canada, primarily automobile floor plan collateral protection, inland marine, extended service business and commercial auto liability. A.M. Best views the efficiencies gained by ready and immediate access to business as a strength; however, TARIC's reliance on its parent for premium revenues makes the company susceptible to changes in macroeconomic conditions and market forces that impact the automobile industry.

Significant deterioration in operating performance or risk-adjusted capitalization may result in downward movement in the ratings and/or outlooks. In addition, negative rating action may also occur if the credit profile of Ford deteriorates.

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

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