Kroll Bond Rating Agency Affirms Assured Guaranty Municipal’s AA+ Financial Strength Rating with Stable Outlook

Category:

Friday, December 16, 2016 10:40 am EST

Dateline:

NEW YORK

Public Company Information:

NYSE:
AGO
"Once again, KBRA has affirmed AGM’s strong AA+ rating reflecting the high level of protection available to investors in AGM-insured bonds"

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) affirmed its insurance financial strength rating of AA+, with a Stable Outlook, for Assured Guaranty Municipal Corp. (AGM), a financial guaranty subsidiary of Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty)(NYSE:AGO).

In the report, KBRA noted the following key strengths supporting AGM’s AA+ rating:

  • AGM demonstrated the ability to withstand KBRA’s conservative stress case loss assumptions across the breadth of its insured portfolio.
  • AGM has a mature and high-functioning operating platform supported by strong governance and risk management systems.
  • AGM’s tested management team is well positioned to address future portfolio risk issues should they develop given their experience through the credit crisis.
  • AGM’s substantial and continuing runoff in structured finance components of the company’s portfolio, which are down 87% since year-end 2009, should continue to moderate risk.

“Once again, KBRA has affirmed AGM’s strong AA+ rating reflecting the high level of protection available to investors in AGM-insured bonds,” said Dominic Frederico, President and CEO of Assured Guaranty. “KBRA subjected AGM’s insured portfolio to rigorous statistical modeling with elevated levels of assumed economic stress, including case by case stress analysis of our Puerto Rico, residential mortgage-backed and other distressed credits. They found that, even in this highly unlikely scenario, AGM satisfied all claims in full and on time with a comfortable balance remaining.

“This most recent affirmation follows KBRA’s affirmation of Municipal Assurance Corp. at AA+, stable, in July and its assignment to Assured Guaranty Corp. of a AA, stable, rating in September,” he added.

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 December 16, 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.

Contact:

Assured Guaranty Ltd.
Robert Tucker, 212-339-0861
Senior Managing Director, Investor Relations and Corporate Communications
rtucker@agltd.com
or
Ashweeta Durani, 212-408-6042
Vice President, Corporate Communications
adurani@agltd.com