@$:@bylinerg:By Scott Neil@bodyindent:<*t(0,0," ")>AM Best has downgraded the financial strength rating of American Live Stock Insurance Company as it is acquired by Bermuda-based insurer Hiscox.<*t(0,0," ")>The Illinois-based live stock insurance company has had its finincial strength rating cut from A+ (superior) to A (excellent) and its issuer credit rating lowered from "aa-" to "a". The ratings have been removed from under review with negative implications and assigned a stable outlook. <*t(0,0," ")>These actions follow the recent announcement that Hiscox has received regulatory approval completing its acquisition of ALTHOA, an insurance holding company, and its subsidiaries, American Live Stock (ALS) and Harding & Harding, an affiliated insurance agency. <*t(0,0," ")>According to the AM Best agency the rating actions reflect the anticipated changes in ALS' <*t(0,0," ")>business profile due to growth expectations in the company's existing book of business, as well as the new professional indemnity product offerings to be introduced by Hiscox.<*p(0,12,0,10.5,0,0,g)><*t(0,0," ")>"The downgrades also recognise the challenges and uncertainties emanating from the successful execution of ALS' business plans amid increasingly competitive market conditions.<*t(0,0," ")>"The stable outlook reflects AM Best's belief that the company will sustain favorable risk-adjusted capitalisation and operating performance, while maintaining moderate underwriting leverage measures,"<>said the agency.<*p(0,12,0,10.1,0,0,g)><*t(0,0," ")>"Hiscox is a specialist insurance group listed on the London Stock Exchange. Hiscox brings considerable expertise to ALS including a strong management team, improved technology platform and greater capital flexibility.<*t(0,0," ")>"The acquisition gives Hiscox the opportunity to expand its existing US operations and product offerings through ALS' admitted status in all 50 states. <*t(0,0," ")>"ALS' current core business focuses on animal mortality insurance for cattle and horses and is a complementary fit to the bloodstock business written by Hiscox."