Moody's Investors Service downgraded Assured Guaranty's insurance financial strength ratings due to continued struggles in the market in which the company operates.
The ratings actions include lowering Assured Guaranty Municipal Corp. to A2 from Aa3, Assured Guaranty Corp. to A3 from Aa3, and Assured Guaranty Re Ltd.(AGRe) to Baa1 from A1.
“Today's rating action reflects Moody's downward reassessment of Assured's business franchise, expected future profitability, and financial flexibility,” Moody's says in a statement. “Assured operates in an industry that has not recovered from the financial crisis and, like its peers, will continue to struggle in the face of declining fundamentals, including a dramatic reduction in insurance usage, modest profitability and still-meaningful legacy risk.”
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