A rating firm today gave a negative evaluation to a Financial Guaranty Insurance Company plan to divide the firm into two separate operations, with municipal bond business in one unit and riskier offerings in another.

Standard & Poor's Ratings Services said it is putting the FGIC "A" rating and the FGIC Corp. holding company rated "BBB" on CreditWatch with negative implications.

S&P said it also acted based on statements from the major stakeholder in FGIC

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