A.M. Best Co. last week has downgraded the financial-strength and credit ratings of Reno-based Western Insurance Co. and Western Bonding Co.
The insurance ratings service said Western Insurance is challenged by its exposure to contractors in the troubled economies of Nevada and California and its loss of a listing that allowed it write bonds for federal construction projects.
Western Bonding, meanwhile, has a strong balance sheet and still can write bonds for federal jobs. But A.M. Best said its scope of operations both among products and geographic markets is fairly limited.
On a positive note, A.M. Best noted Western Insurance successfully entered into the bail bonds business with a partnership involving Two Jinn Inc. in California.
The company didn't respond last week to an e-mailed request for comment.
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