AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR of “bb” (Fair) of Tower Bonding and Surety Co., Inc. (Tower Bonding) (San Juan, PR). The outlook of the FSR is stable.

The Credit Ratings (ratings) reflect Tower Bonding’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.

The revision of the Long-Term ICR outlook to positive from stable reflects the improvement in Tower Bonding’s balance sheet strength metrics from operating profitability. Overall risk-adjusted capitalization and improving balance sheet metrics have benefited from the company’s consistent operating profitability. Tower Bonding has produced profitable pre-tax operating results in each of the previous five years and through the first half of 2025, largely driven by underwriting income supplemented by investment income.

Positive rating action could occur with continued improvement in the balance sheet strength metrics over the intermediate term.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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