Kroll Bond Rating Agency Assigns AA with Stable Outlook to Assured Guaranty Corp.
Public Company Information:
NEW YORK--(BUSINESS WIRE)--Assured Guaranty Corp. (AGC), a financial guaranty subsidiary of Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty)(NYSE:AGO) has been assigned an insurance financial strength rating of AA, Stable Outlook, by Kroll Bond Rating Agency (KBRA). AGC is the third Assured Guaranty company to be rated by KBRA. Affiliates Assured Guaranty Municipal Corp. (AGM) and Municipal Assurance Corp. (MAC) are both rated AA+, Stable Outlook, by KBRA.
In its rating analysis, KBRA notes that:
- AGC demonstrates the ability to withstand KBRA’s conservative stress case loss assumptions across the breadth of its insured portfolio.
- AGC’s mature and high-functioning operating platform is supported by strong governance and risk management systems.
- AGC’s tested management team is well positioned to address future portfolio risk issues should they develop.
- The substantial and continuing runoff in structured finance components of AGC’s portfolio should continue to moderate risk. Structured finance exposure is down nearly 75% since year-end 2010.
“KBRA assigned AGC its AA rating after conducting rigorous case by case stress analysis of the most sensitive segments of AGC’s insured portfolio, along with robust statistical stress modeling of all other AGC exposures. AGC was shown to satisfy, in full and on time, and with a comfortable balance remaining, the higher than expected claims that would occur in an economic crisis that a guarantor meriting KBRA’s AA rating should survive,” said Dominic Frederico, President and CEO of Assured Guaranty. “As a result, each of Assured Guaranty’s U.S. subsidiaries writing financial guaranty insurance now carries financial strength ratings of double-A flat or higher, with stable outlooks, from two major rating agencies, indicating a level of rating agency comfort unmatched among active bond insurers.”
AGC is part of Assured Guaranty, the leading provider of financial guaranty insurance. Including AGC and its affiliates, the group has $12 billion of claims-paying resources. Assured Guaranty generates approximately $400 million of annual investment income from its high-quality, fixed-income investment portfolio. On average, $500 million of municipal bonds insured by Assured Guaranty companies trade each day.
Cautionary Statement Regarding Forward-Looking Statements:
Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, those resulting from Assured Guaranty’s inability to maintain its current financial ratings; further actions that the rating agencies may take with respect to the financial strength ratings of Assured Guaranty; adverse developments in Assured Guaranty’s insured or investment portfolio; and other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors identified in Assured Guaranty’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of September 20, 2016. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Assured Guaranty provides financial guaranty insurance through Assured Guaranty Corp., which is a subsidiary of Assured Guaranty Ltd. Assured Guaranty Ltd., is a Bermuda-based holding company that provides, through its operating subsidiaries, insurance products to the U.S. and international public finance, infrastructure and structured finance markets. More information can be found at: AssuredGuaranty.com.