Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Você está prestes a deixar o site local do Brasil e será direcionado ao site global. Deseja continuar?
Não exibir esta mensagem novamente
Sim
Não
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:
​​

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's downgrades Assured Guaranty Corp. to Aa3, confirms Assured Guaranty Municipal (FSA) at Aa3

12 Nov 2009

New York, November 12, 2009 -- Moody's Investors Service has downgraded to Aa3, from Aa2, the insurance financial strength rating of Assured Guaranty Corp. (AGC) and downgraded to A1, from Aa3, the insurance financial strength rating of Assured Guaranty Re (AG Re); both ratings remain under review for possible downgrade. The rating agency confirmed the Aa3 insurance financial strength rating of Assured Guaranty Municipal Corp. (AG Muni -- formerly, Financial Security Assurance Inc.), with a negative outlook. AGC, AG Muni and AG Re (collectively, Assured) are all insurance operating subsidiaries of Assured Guaranty, Ltd. These rating actions follow, and in the case of AG Muni - conclude, reviews initiated on May 20, 2009. Today's rating actions have implications for the various transactions wrapped by AGC and AG Muni as discussed later in this press release.

As outlined in prior statements, Moody's review of Assured's ratings has centered on the performance of mortgage-backed securities (RMBS) exposures. Over the past year Moody's has observed substantial deterioration in the performance of underlying mortgage collateral in virtually all the segments of the market, resulting in estimates of pool losses for some transactions that would likely breach even the relatively high attachment points of Assured's first lien exposures (Alt A and subprime). Other exposures were also impacted by mortgage related deterioration, specifically life insurance-linked deals backed by collateral pools that included RMBS securities. Moody's said that adverse trends in RMBS loss estimates have had varying effects on Assured Guaranty Ltd.'s main insurance subsidiaries.

ASSURED GUARANTY CORP

AGC has suffered the most significant deterioration in relation to its $2.7 billion in reported claims paying resources as a result of stress in its RMBS, and CDO (primarily TruPs) portfolios, and its current statutory capital position is relatively weak in relation to the possible mortgage-related losses, which Moody's estimates to be approximately $600 million, before estimated repurchases of loans that have breached contractual representations and warranties (put-backs), as an expected case and reaching about $1.7 billion in a severe stress scenario. However, Moody's stated that capital strengthening initiatives under consideration by the group could result in a conclusion of the rating review with a confirmation at the Aa3 rating level, negative outlook, if fully implemented. Absent such initiatives, Moody's would expect to lower AGC's rating into the single-A range.

ASSSURED GUARANTY MUNI

AG Muni, with a reported $7.3 billion of claims paying resources, remains adequately capitalized for its current rating level, in Moody's view, despite some additional RMBS deterioration, with losses (before put-backs) on those exposures estimated to be about $1.9 billion in the expected case and rising close to $3.2 billion in a severe stress scenario. The negative outlook on AG Muni reflects still meaningful uncertainty, over the next year or two, about the ultimate performance of the firm's insured portfolio following a period of severe dislocation in financial markets.

ASSURED GUARANTY RE

The downgrade of AG Re reflects its significantly constrained external business opportunities, given the declining fortunes of its 3rd party customers, and Moody's view that it could therefore become more of an instrument of capital support for its affiliated primary financial guaranty affiliates, AGC and AG Muni rather than a distinct operating business. As with AGC, consummation of capital strengthening initiatives under consideration could lead to a conclusion of the AG Re rating review with a confirmation of the current A1 rating (negative outlook).

HOLDING COMPANIES

The rating agency confirmed the senior debt rating of FSA Holdings Inc. at A3 (negative outlook), and downgraded the senior debt rating of Assured Guaranty Holdings to A3 (review for possible downgrade) from A2, reflecting their subordination to insurance obligations.

OTHER ANALYTICAL CONSIDERATIONS

A key focus of Moody's capital adequacy analysis is the evaluation of the group's exposure to mortgage-related losses. The Assured Group insures approximately $31.2 billion of US RMBS, and reported total claims paying resources of $12.6 billion at the end of the second quarter. The rating agency expects substantial additional claims from second lien exposures and sees more stress coming from first lien (Alt. A and subprime) transactions. Such losses are mitigated, in part, by the firm's ability to "put back" to solvent lenders loans that are in breach of representations and warranties, said the rating agency. Growing evidence of the magnitude of such breaches, and Assured's early success in putting back loans to lenders, suggests that recoveries on claims paid could be substantial; however, significant uncertainty remains as to the extent of the guarantor's ultimate success.

According to Moody's, the operational leverage inherent in the business of Assured can make the credit profiles of the operating subsidiaries rather sensitive to the performance of individual insured sectors and even, in some cases, individual transactions. This risk is mitigated -- but not eliminated -- by strong risk management, which has contributed to Assured's much better performance than peers during the financial crisis. This performance has, in Moody's view, enabled Assured to attract new capital over that past few years and remain an active underwriter of risk, a positive credit consideration.

The rating agency said that business opportunities available within the structured finance market have fallen off significantly, but Assured currently enjoys a very strong competitive position in the US municipal market given the scarcity of competitors and alternative forms of credit enhancement for municipal bonds. Moody's lead analyst Arlene Isaacs-Lowe noted, "While the value proposition of financial guaranty insurance has been eroded in some segments of the US municipal finance market, Assured still enjoys very strong demand for its insurance product from smaller and higher risk municipal issuers that would face higher funding costs absent credit enhancement. However, the municipal market remains somewhat dislocated and it is unclear how Assured's competitive position will evolve once it normalizes."

TREATMENT OF WRAPPED TRANSACTIONS

Moody's ratings on securities that are guaranteed or "wrapped" by a financial guarantor are generally maintained at a level equal to the higher of the following: a) the rating of the guarantor (if rated at the investment grade level); or b) the published underlying rating (and for structured securities, the published or unpublished underlying rating). Moody's approach to rating wrapped transactions is outlined in Moody's special comment entitled "Assignment of Wrapped Ratings When Financial Guarantor Falls Below Investment Grade" (May, 2008); and Moody's November 10, 2008 announcement entitled "Moody's Modifies Approach to Rating Structured Finance Securities Wrapped by Financial Guarantors".

As a result of today's action Moody's-rated securities that are guaranteed or "wrapped" by Assured Guaranty Corp. are also downgraded and placed under review for possible downgrade, except those with higher published underlying ratings (and for structured finance securities, except those with higher published or unpublished underlying ratings); securities that are guaranteed or "wrapped" by AG Muni (formerly FSA) are confirmed, except those with higher published underlying ratings (and for structured finance securities, except those with higher published or unpublished underlying ratings). A list of these securities will be made available under "Ratings Lists" at www.moodys.com/guarantors.

RATINGS DOWNGRADED

The following ratings have been downgraded and placed on review for possible downgrade:

Assured Guaranty Corp. -- insurance financial strength rating to Aa3, from Aa2;

Assured Guaranty (UK) Ltd. -- insurance financial strength rating to Aa3, from Aa2;

Assured Guaranty Re Ltd. -- insurance financial strength rating to A1, from Aa3;

Assured Guaranty Re Overseas Ltd. -- insurance financial strength rating to A1, from Aa3;

Assured Guaranty Mortgage Insurance Company -- insurance financial strength rating to A1, from Aa3;

Assured Guaranty US Holdings Inc. -- senior unsecured to A3, from A2, junior subordinated debt to Baa1, from A3, provisional senior unsecured to (P)A3, from (P)A2, provisional subordinated debt to (P)Baa1, from (P)A3;

Assured Guaranty Ltd. (Bermuda) -- issuer rating to A3, from A2, provisional senior unsecured to (P)A3, from (P)A2, provisional subordinated debt to (P)Baa1, from (P)A3, provisional preferred to (P)Baa2, from (P)Baa1;

Assured Guaranty Capital Trusts I and II -- provisional preferred to (P) Baa1, from (P)A3;

Woodbourne Capital Trusts I, II, III, and IV -- contingent capital securities to A3, from A1.

RATING ASSIGNED

Moody's has assigned a rating of A3, review for possible downgrade, to the $150 million equity linked senior unsecured debt of Assured Guaranty US Holdings Inc.

RATINGS CONFIRMED

The following ratings have been confirmed with a negative outlook:

Assured Guaranty Municipal Corp. -- insurance financial strength at Aa3;

Financial Security Assurance (U.K.) Limited -- insurance financial strength at Aa3;

Financial Security Assurance Intl Ltd. -- insurance financial strength at Aa3;

Financial Security Assurance Holdings Ltd. -- senior unsecured debt at A3, junior subordinated debt at Baa1, provisional senior debt at (P) A3, provisional subordinated debt at (P)Baa1, and provisional preferred stock at (P)Baa2;

FSA Seguros Mexico S.A. de C.V. -- insurance financial strength at Aa3 (the firm's Aaa.mx national scale rating was affirmed); and

Sutton Capital Trusts I, II, III and IV -- contingent capital securities at A3.

The last rating action was on May 20, 2009 when Moody's placed the insurance financial strength ratings of AG Muni and Assured Guaranty Corp. under review for possible downgrade.

The principal methodology used in rating Assured Guaranty and AG Muni was Moody's Rating Methodology for the Financial Guaranty Insurance Industry, which can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the rating process can also be found in the Credit Policy & Methodologies directory.

Assured Guaranty Corp. is a financial guaranty insurance company based in New York. Assured Guaranty Municipal Corp. (previously called Financial Security Assurance, Inc.) is the main operating company of Financial Security Assurance Holdings Ltd. Assured Guaranty Corp. and Financial Security Assurance Holding Ltd. are wholly owned subsidiaries of Assured Guaranty US Holdings Inc. Assured Guaranty Re Ltd. is a Bermuda based financial guaranty reinsurance company. Assured Guaranty Re and Assured Guaranty US Holdings Inc. are wholly owned by Assured Guaranty Ltd. [NYSE:AGO].

New York
Arlene Isaacs-Lowe
Senior Vice President
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Stanislas Rouyer
Senior Vice President
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's downgrades Assured Guaranty Corp. to Aa3, confirms Assured Guaranty Municipal (FSA) at Aa3
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​