Moody’s Affirms Ratings for Assured Guaranty and Subsidiaries
Revises Outlook for AGC and AGUK to Stable Citing AGC’s Strengthening Capital Adequacy; All Other Outlooks Affirmed Stable
Public Company Information:
HAMILTON, Bermuda--(BUSINESS WIRE)--Moody’s Investors Service (Moody’s) affirmed the ratings of Assured Guaranty Ltd. (Assured Guaranty or the Company) (NYSE:AGO) and the Assured Guaranty subsidiaries it rates, including the financial strength ratings of Assured Guaranty Municipal Corp. (AGM), Assured Guaranty Corp. (AGC), Assured Guaranty (Europe) Ltd. (AGE) and Assured Guaranty (UK) Ltd. (AGUK).
While affirming the stable outlooks on the A2 ratings of AGM and AGE, Moody’s revised to stable from negative the outlooks for the A3 ratings of AGC and AGUK.
Moody’s summarized its rating rationale by noting Assured Guaranty’s
- “strong overall capital profile and core earnings power”
- “ability to underwrite transactions in both the public finance and structured finance markets worldwide through its multiple insurance operating subsidiaries”
- “ongoing improvement in capital adequacy” and
- “leadership position in the financial guaranty insurance sector.”
Regarding the change in AGC’s rating outlook, Moody’s cited AGC’s “strengthening capital adequacy profile,” noting that the recent acquisitions of Radian Asset Assurance and CIFG North America increased AGC’s capital resources, invested assets, and future premium earnings.
“With this most recent report, Moody’s, S&P Global Ratings and Kroll Bond Rating Agency have all now affirmed their ratings and stable outlooks for the financial strength of the Assured Guaranty units they rate,” said Dominic Frederico, President and CEO. “All three agencies have indicated that Assured Guaranty’s exposures to Puerto Rico credits are unlikely to affect their current ratings.” (Assured Guaranty’s Municipal Assurance Corp. subsidiary has no exposure to Puerto Rico.)
“With $12 billion in claims-paying resources, $400 million of annual income currently generated from our investment portfolio and a strong credit profile, Assured Guaranty is well positioned to help issuers reduce borrowing costs while protecting insured bondholders,” he added.
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 changes in rating agency models or opinions, adverse credit developments in Puerto Rico or other portions of the insured portfolio and the impact of those developments on rating agency models and opinions, 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 August 8, 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 Ltd. is a publicly traded (NYSE: AGO) Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.