S&P: Assured risk limited

Standard & Poor's said that Assured Guaranty Ltd.'s agreement to acquire Financial Security Assurance Holdings Ltd. appears to pose limited rating risk for any of Assured's rated entities, including Assured Guaranty Corp. (AAA/stable), or FSA Holdings' units, including Financial Security Assurance Inc. (AAA/watch negative).

"The transaction marks a continued reshaping of the bond insurance industry," said S&P credit analyst Robert Green.

On Nov. 14, Assured announced that it had reached an agreement with Dexia SA to acquire FSA Holdings, the parent company of FSA, the agency said, adding that it also announced that the $361 million cash portion of the total $722 million purchase price will be raised through an equity offering.

The agency said it understands that common shares to Dexia will account for the difference and it has been told that the equity offering is backstopped by a commitment by WL Ross & Co., which is expected to be supported by a letter of credit, cash collateral, or other form of support.

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