These rating actions reflect TSI's blue brand strength in Puerto Rico, its market share and the improvement in its capital position. TSI benefits from strong brand name recognition in its market and has the largest share of all managed care companies operating in the Puerto Rico market. However, its market share has slightly declined over the last several years as competitors have positioned themselves in the Medicare markets. The level of risk-based capital (RBC) at TSI has improved to over 600% of authorized control level (ACL) at year-end 2007 from 520% at year-end 2006. Additionally, the debt-to-capital ratio at TSM has improved to 26.7% at the end of March 2008 from 35% at year-end 2006.

Offsetting these positive rating factors is TSI's concentration in earnings from government sponsored programs. A large portion of TSI's revenues are generated from the Medicare and Health Reform businesses, which are susceptible to federal and state government regulations. The overall dependence on Medicare and Reform may challenge TSI's earnings in the future, should there be a change in funding for Medicare Advantage or delays in rate increases for health reform. In addition, TSM has low debt service capacity with earnings before interest & taxes (EBIT) interest coverage less than six times earnings, although its access to the capital markets has been greatly enhanced since the initial public offering in December 2007. Interest coverage below six times is considered low for the managed care industry, which is the primary driver of earnings for TSM. Debt-to-capital levels have been tempered in 2007 partially due to the initial public offering. However any significant issuance of debt may push debt-to-capital levels above 30%, which is a level considered high when compared to its peers.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

SOURCE: A.M. Best Co.

A.M. Best Co
Analysts:
Wayne Kaminski, 908-439-2200, ext. 5061
wayne.kaminski@ambest.com
or
Sally Rosen, 908-439-2200, ext. 5280
sally.rosen@ambest.com
or
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

The ratings reflects the underlying credit quality of M-S-R's three members: The Modesto Irrigation District (rated 'A+' with a Stable Rating Outlook by Fitch), the City of Santa Clara dba Silicon Valley Power ('A'/Stable), and the City of Redding (rated 'A+'/Stable). Bondholders are supported by absolute and unconditional take-or-pay purchase power commitments with each of the members that extend for the life of the debt with a 25% step-up provision in the event of a member default. Payments by the members are made as an operating expense of their respective electric systems, ahead of each member's own direct debt payments.

M-S-R's credit weaknesses include the large revenue concentration in only three members, and increased regulatory pressure in California to reduce its greenhouse gas emissions, which may involve long-term supply planning changes at electric utilities in the state, including M-S-R members. Potential federal legislation implementing some type of carbon-tax could further impact power prices.

Bondholder security is provided by payments from the members related to M-S-R's 146 megawatt (MW), or 28.8% ownership interest, in a coal-fired generating unit (San Juan Unit 4) located in New Mexico. San Juan is operated by Public Service Company of New Mexico and served by a coal mine located adjacent to the plant. In recent years, the plant has had strong availability factors around 90%. In fiscal 2007, the availability factor was lower, but still adequate, at 80% as a result of outages related primarily to environmental improvements being made at the plant. The delivered cost of the project to members was higher than usual at $80 per megawatt hour (MWh) due to the outages and the relatively high proportion of fixed costs (50% or $42 per MWh). The delivered cost to members is projected to range between $60-70 MWh in the next few years. The resource provides a competitively priced, baseload resource to members compared to the California market, even with its significant fixed costs. However, long-term concerns exist related to the state's greenhouse gas legislation that may make it less advantageous to own carbon producing resources, such as San Juan.

Certain capital improvements and environmental upgrades are in progress at the plant, including pollution control equipment, a generator rewind, and rotor replacement. M-S-R funded its share of the environmental improvements (around $25 million) from cash reserves. The Series 2008L bonds will reimburse M-S-R for approximately $10 million in costs. Single unit outage risk is mitigated by a reserve sharing agreement M-S-R has with Tucson Electric Power, the owner of San Juan Unit 1 and Unit 2; and by the fact that the project accounts for a small portion of each utility's overall power supply. M-S-R owns transmission capacity in the Southwest Transmission Project that delivers the power into California.

Another M-S-R power supply arrangement, separate from the San Juan Project, includes a power purchase agreement for wind energy that began in October 2006. M-S-R entered into a 20-year purchase agreement with PPM Energy, Inc. (currently known as Iberdrola Renewables, Inc.) for 199.5 MW of wind power that is firmed by the provider. The contract was entered into in 2005 and provides economically priced renewable energy in the current California market. The purchase is designed to assist the members in meeting their individual renewable goals. Financial performance in fiscal 2007 reflected increased revenues and expenses related to this new large contract.

As a joint action agency, M-S-R collects only the amount of revenues from its members necessary to cover costs, including debt service. Debt service coverage in fiscal 2007 was 1.49 times (x), which is in-line with comparably rated municipal wholesale power providers. Liquidity was strong for a joint action agency with $36.2 million in unrestricted cash, or 186 days operating cash as of Dec. 31, 2007 and is expected to remain healthy. The debt restructuring being implemented through the three bond series will leave M-S-R with only 18% of its debt portfolio in synthetic fixed-rate mode. The result of the restructuring will be a more traditional debt portfolio, with reduced counterparty risk.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

SOURCE: Fitch Ratings

Fitch Ratings
Kathy Masterson, 415-732-5622, San Francisco
Joanne Ferrigan, 212-908-0399, New York
or
Media Relations:
Brian Bertsch, 212-908-0549, New York

Partially offsetting these positive rating factors are the group's geographic concentration and competitive marketplace. With all of its business generated in Puerto Rico, the group is exposed to frequent and severe weather-related events, regulatory and judicial changes as well as economic concerns. The group maintains a comprehensive reinsurance program with its affiliate, MAPFRE RE, Compania de Reaseguros, S.A. (Spain), which reduces its probable maximum loss to manageable levels.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

SOURCE: A.M. Best Co.

A.M. Best Co.
Analysts
Sharon Summa, 908-439-2200, ext. 5510
sharon.summa@ambest.com
or
Joseph Burtone, 908-439-2200, ext. 5125
joseph.burtone@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Prezident Music's future release forecast will include Johnny Prez's next CD titled "Imperdonable" which is currently being produced by Johnny Prez and with co-producers Scott Storch, Elvis Garcia, and Predicador. Other artists to be featured on the CD are Lil Wayne, Akon, and Jamie Foxx. "Imperdonable" is expected to be released later this year worldwide. As for other artists on the label, Prezident Music has been developing a promising rapper by the name of Princestar, a seventeen-year-old Puerto Rican rapper from Brooklyn. Production on Princetar's project will begin shortly at the Prezident Music studios in San Juan with a projected winter '09 release.

"We are extremely excited about Princestar; he is extremely talented, unique, genuine, down to earth and full of energy. He reminds me a lot of Johnny -- both have positive messages in their music and aim to please their audiences," says Ruben Malaret, Manager for both Johnny Prez and Princestar. Princestar will be making several special appearances throughout the summer at various music festivals and venues in major cities throughout the United States. "We want to introduce Princestar to the masses of attendees at these festivals; they will love him," continued Malaret.

Prezident Music is currently developing a reality series to air on VH1, a series that will help Prezident Music find their next artist. More information on the show and how upcoming artists can participate will be available on the label's official web site: www.prezidentmusic.com . For updates and more information on Johnny Prez and Princestar, please visit their official web sites: www.johnny-prez.com and www.princestar.com

SOURCE Celebrity PR Co.

http://www.prezidentmusic.com