Moody's Investors Service has assigned credit ratings to the new $500 million shelf registration (senior unsecured debt at Baa2 with a stable outlook) of Scottish Annuity & Life Holdings, Ltd.

The shelf registration allows Scottish Annuity to issue, at its discretion, senior debt, subordinated debt, preferred stock, common stock, depository shares, share purchase contracts, and share purchase units.

Moody's anticipates that any future issuance from the shelf will be used primarily to support future growth, particularly of capital-intensive term reinsurance business.

The shelf registration also allows for the issuance of preferred securities from Scottish Holdings Statutory Trust II and Scottish Holdings Statutory Trust III, which are statutory business trusts established by the company for the sole purpose of raising funds for Scottish Annuity.

Preferred securities issued by Scottish Holdings Statutory Trust II & III will be fully and unconditionally guaranteed by the company. In assigning ratings to the shelf, Moody's cited Scottish Annuity's credit strengths, which include its solid capital position, high quality investment portfolio, efficient corporate structure, experienced management, and diversified book of assumed quota share life reinsurance.

Offsetting these strengths are negative factors such as the company's relatively small size compared to the leading reinsurers, its ongoing need to obtain collateral for its reserves to achieve growth objectives, and the nascent nature of the company's financial solutions reinsurance business as well as the heavily concentrated customer base within this business line.

The following prospective shelf ratings were assigned: Scottish Annuity & Life Holdings, Ltd.: senior debt of (P)Baa2, subordinated debt of (P)Baa3; and preferred stock of (P)Ba1 Scottish Holdings Statutory Trust II: trust preferred securities of (P)Baa3 Scottish Holdings Statutory Trust III: trust preferred securities of (P)Baa3

Scottish Annuity is a Bermuda-based insurance holding company whose flagship operating companies include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc, both rated A3 for insurance financial strength.

On December 31, 2002, Scottish Annuity & Life Holdings reported total assets of nearly $3.3 billion and shareholders' equity of $491 million.

The company reported GAAP net income for the first quarter of 2003 of $7.2 million, up from $5.0 million in the first quarter of the prior year.

For more information, visit Moody's web site at www.moodys.com/insurance.