S&P affirms Assured Guaranty

Standard & Poor's said it affirmed its AA financial strength ratings on Assured Guaranty Re Ltd.

The outlook is stable.

While bond insurer rating volatility and housing and mortgage issues have largely disrupted the primary bond insurance market, S&P believes Assured Guaranty is well positioned to provide reinsurance capacity to the primary, direct bond insurance companies and that its stable ratings and outlook positively differentiate it from the four competing companies that offer monoline reinsurance. In addition, the company's strategic relationship with sister company Assured Guaranty Corp. should provide it with a source of ongoing, diversified investment-grade reinsurance business, the agency predicted.

The stable outlook reflects the company's conservative underwriting and investment policy, limited nonprime mortgage risks and strong capital profile, S&P said.

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