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Integon S&PWatch Implications Revised to Positive Re: GMAC Acquisition Plans

24 June 1997

Integon S&PWatch Implications Revised to Positive Re: GMAC Acquisition Plans

    NEW YORK, June 24 -- Standard & Poor's ratings on Integon
Corp. (see list below) remain on CreditWatch, where they were placed
April 28, 1997; however, the implications are revised to positive from
developing. The revision of the CreditWatch implications to positive follows
an announcement by General Motors Corp.'s subsidiary, General Motors
Acceptance Corp. (GMAC; rated single-'A'-minus), that it has entered into a
definitive agreement to acquire Salem, N.C.-based Integon Corp. At a minimum,
the acquisition by GMAC is expected to improve Integon's financial
flexibility.
    Integon, one of the largest nonstandard auto carriers in the U.S., will
add a diversified source of revenue to GMAC's insurance operations which are
currently led by its unit, Motors Insurance Corp.  On a pro forma basis,
Motors Insurance Corp.'s net premium will be increased by almost 66% to $2
billion dollars with the addition of Integon.
    Standard & Poor's will make a final rating decision after discussions
with GMAC to determine both Integon's strategic fit  with GMAC's other
insurance operations and the financial implications for Integon resulting from
the transaction.
    Ratings of General Motors Corp. (single-'A'-minus corporate credit rating)
and General Motors Acceptance Corp. are not affected, Standard & Poor's said.
-- CreditWire

    RATINGS REMAINING ON CREDITWATCH, IMPLICATIONS REVISED TO POSITIVE
                                                  Rating
    Integon Corp.
      Corporate credit rating                     B+
      Senior debt                                 B+
      Preferred stock                             B-
    Integon Capital I
      Capital securities (gtd. by Integon Corp.)  B-

SOURCE  Standard & Poor's CreditWire