S&P cuts Assured Guaranty

Standard & Poor's said it lowered its counterparty credit and financial strength ratings on Assured Guaranty Corp. and Assured Guaranty Municipal Corp. to AA+ from AAA.

The outlook is stable.

The agency also said it affirmed the A+ counterparty credit rating on Assured Guaranty Ltd.

The downgrades reflect a view that the current state of the financial guarantee market, with only one organization issuing new policies, is symptomatic of investors' and issuers' diminished demand for bond insurance, S&P said.

The longer this persists, the more limited the potential for the re-emergence of a strong and vital bond insurance sector, the agency said,, and this market dynamic could hurt the company's business prospects.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.