[GRRN] Financial Assurance for Landfills - fyi

RecycleWorlds (anderson@msn.fullfeed.com)
Wed, 1 Sep 1999 10:33:20 -0500

A.M. Best Places Rating of National
Guaranty, Captive Insurer for Waste
Management, Under Review

August 26, 1999

NewsEdge Corporation -- A.M. Best Co.
today placed its A- (Excellent) rating on
National Guaranty Insurance Co.,
Burlington, Vt., under review with
developing implications.
The action is based on significant
developments at its parent company,
Waste Management Inc., and the
potential impact on the financial strength
and operating performance of the captive
insurance company. Recent earnings
disappointments at Waste Management
have created severe pressures for the
company in the credit and capital
markets, resulting in upheaval among top
Waste Management is the largest solid
waste management firm in the United
States and Canada, providing integrated
services to about 25 million municipal,
commercial, industrial and residential
customers. The financial strength of the
captive is closely tied to the strength of
the parent, as the company was
established to meet the parent's financial
assurance obligations under Subtitle D of
the Resource Conservation and Recovery
Act. A significant portion of the captive's
assets are represented by a note
receivable from the parent.
The under review status reflects A.M.
Best's concerns regarding Waste
Management's financial and operational
pressures and the potential asset risk of
the captive. A.M. Best will closely monitor
further developments at Waste
Management, including its financial
commitment to National Guaranty, and
will update the captive's rating
A.M. Best Co., established in 1899, is
America's oldest and most widely
recognized insurance rating and
information source. For more information,
visit A.M. Best's Web site at
<<Business Wire, 08-25-99, 14:51
CONTACT: A.M. Best Co. | Jeffrey
Dunsavage | 908/439-2200, ext. 5618 |

Peter Anderson
RecycleWorlds Consulting
4513 Vernon Blvd. Ste. 15
Madison, WI 53705-4964
Phone:(608) 231-1100/Fax: (608) 233-0011