A.M. Best Assigns Indicative Debt Rating to Triple-S Inc.'s Senior Notes.

OLDWICK, N.J. -- A.M. Best Co. has assigned an indicative debt rating of "bbb+" to Triple-S Inc.'s (Triple-S) to be issued $50 million unsecured senior notes due 2019. The rating outlook is stable. The financial strength ratings of A- (Excellent) of Triple-S and its life and property/casualty insurance affiliates, Seguros de Vida Triple-S Inc. and Seguros Triple-S Inc., are unaffected. All companies are located in San Juan, PR.

The proceeds will be used to refinance the short-term debt of $37 million issued by Triple-S to pay for its tax liability. The remainder will be used for working capital purposes. The senior notes will be offered privately and beginning on their third anniversary, the notes may be redeemed at the option of Triple-S at a premium, thereafter, scaling to a par call on the fifth anniversary. Triple-S Management, Inc.'s (TSM) financial leverage is expected to remain under 30% over the medium term, and its coverage and capital ratios will remain within A.M. Best's expectations.

On July 31, 2003, Triple-S' tax exemption terminated effective December 31, 2002, and was subject to Puerto Rico income taxes as an other-than-life insurance entity, as defined in the Puerto Rico Code. Triple-S' accumulated statutory net income, while operating under the tax exemption, was stipulated to have amounted to $133 million and deemed distributed to TSM. Thus, TSM recorded a tax liability of $52 million during the second quarter of 2003, of which $37 million was paid on July 31, 2003, the date of the closing agreement with $15 million being paid on April 15, 2004.

The rating reflects Triple-S' improved financial performance and capital position. A.M. Best also recognizes the company's prominent market presence in Puerto Rico, its diversified product portfolio and the fragmented pressure from its competitors. Partially offsetting these strengths is a significant concentration within the Health Care Reform business segment.

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A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.