A.M. Best Upgrades Ratings of Pathfinder Insurance Company

A.M. Best Co. has upgraded the financial strength rating to B++ (Good) from B+ (Good) and issuer credit rating to ?bbb? from ?bbb-? of Pathfinder Insurance Company (Pathfinder) (Denver, CO). The outlook for both ratings has been revised to stable from negative.

These ratings reflect Pathfinder's strong capitalization, as reflected in its very high Best's Capital Adequacy Ratio, conservative leverage and operating strategies and its historically high profitability.

Partially offsetting these positive rating factors are the company's limited scope of business and its dependence on its ultimate parent, Avis Budget Group, Inc. (Avis Budget) (headquartered in Parsippany, NJ) (NYSE: CAR), for business generation. Pathfinder continues to have minimal losses due to the structure of coverage provided by Avis Budget and its strict risk management program.

The ratings consider Pathfinder's strategic value in providing automobile liability insurance for a portion of Avis Budget's corporately owned rental fleets. The ratings also recognize the overall financial and credit ratings of Avis Budget.

The principal methodology used in determining these ratings is Best's Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: ?Risk Management and the Rating Process for Insurance Companies?; ?Understanding BCAR for Property/Casualty Insurers?; ?Rating Members of Insurance Groups?; and ?A.M. Best's Rating Methodology for Captive Insurance Companies.? Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best Co.
Fred Eslami, 908-439-2200, ext. 5406
Senior Financial Analyst
[e-mail]
or
Steven Chirico, CPA, 908-439-2200, ext. 5087
Assistant Vice President
[e-mail]
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[e-mail]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[e-mail]