Fitch: CIFG on watch

Fitch Ratings said it placed the AAA insurer financial strength ratings on rating watch negative for CIFG Guaranty, CIFG Assurance North America, Inc. and CIFG Europe.

The agency said that this action on CIFG Guaranty follows Fitch's announcement today that it will be updating certain modeling assumptions in its ongoing analysis of the financial guaranty industry.

Fitch said it believes it is possible that modeled losses for structured finance collateralized debt obligations could increase materially as a result of these updated projections.

Fitch added that it expects that both simulated capital model losses and expected losses will increase materially for CIFG because of the company's significant SF CDO exposure within its insured portfolio, which was $9.2 billion as of Sept. 30.

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