Fitch drops FGIC insurer rating to CCC

Fitch Ratings said it downgraded the insurer rating of FGIC Corp. and its financial guaranty insurance subsidiaries to CCC from BBB and its long-term issuer rating to CCC- from BB.

The action is based on Fitch's expectation that FGIC will experience further losses on mortgage-backed securities.

As a result, Fitch also downgraded municipal bonds insured by FGIC to their underlying ratings if that rating is lower than BBB. Ratings on all FGIC-insured bonds without underlying Fitch ratings were withdrawn.

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