The troubled rating's landscape for guaranty insurers continued after Moody's Investors Service took action on the insurance financial strength of two carriers late Friday.
Moody's said it placed the insurance financial strength of FGIC Corp.'s main operating subsidiaries under review and downgraded the insurance financial strength of two Syncora Holding's subsidiaries.
The insurance financial strength of "B1" of FGIC's subsidiaries, including Financial Guaranty Insurance Company and FGIC UK Ltd., was placed under review because Moody's said it expects additional stress on the underwriter's risk-adjusted capital position "in light of continued deterioration in housing fundamentals and the related implications on the company's mortgage-related exposures.
Moody's downgraded the "B2" rating of Syncora Guarantee Inc. and Syncora Guarantee (U.K.) Ltd. to "Caa1." The ratings are under review with direction uncertain.
The financial strength of Syncora Guarantee Re Ltd. was also downgraded to "Caa1" from "B2" and withdrawn after its merger with Syncora Guarantee.
Moody's said it is concerned with higher mortgage related losses in the company's portfolio as well as ongoing negotiations over termination of credit default swap obligations. The action reflects the uncertainty over the outcome of those negotiations.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.