S&P Affirms Assured Guaranty’s AA Financial Strength Ratings with Stable Outlook
27 June 2018 - 8:19AM
Business Wire
New Report Highlights Assured Guaranty’s
Strong Competitive Profile, Very Strong Capital Adequacy and
Leadership Position in the U.S. Public Finance Market
Assured Guaranty Ltd. (NYSE:AGO) announced today that S&P
Global Ratings (S&P) has affirmed the AA financial strength
ratings on U.S. bond insurers Assured Guaranty Municipal Corp.
(AGM), Municipal Assurance Corp. (MAC) and Assured Guaranty Corp.
(AGC); U.K. financial guarantor Assured Guaranty (Europe) plc
(AGE); and Bermuda insurers Assured Guaranty Re Ltd. (AGRe) and
Assured Guaranty Re Overseas Ltd. (AGRO). S&P also affirmed the
financial strength ratings of U.K. financial guarantor Assured
Guaranty (UK) plc and Assured Guaranty (London) plc (AG London).
The outlooks of all the Assured Guaranty entities are stable, other
than the outlook of AG London, which is positive.
In its June 26th report, S&P noted Assured Guaranty’s:
- “very strong capital adequacy”
- “proven track record of credit
discipline and market leadership in terms of par insured and
premiums written”
- “diverse underwriting strategy” with “a
well-thought-out and measured approach” to international
infrastructure and global structured finance transactions
- “capital position could absorb losses
on its entire exposure to issuers in Puerto Rico of roughly $3
billion and…there would be no change in Assured’s capital adequacy
score or financial risk profile”
In response to the report, Dominic Frederico, President and CEO
said:
“Once again, S&P affirmed Assured Guaranty’s AA stable
rating. The affirmation corroborates not only our financial
strength but also our proven business model, profitable financial
results and the success of our strategic choices. Our size and
experience allow us to lead the U.S. municipal bond market by
participating broadly, regularly insuring large municipal
transactions, including public-private partnerships, as well as
small and mid-size transactions, while achieving favorable premium
rates. Additionally, our international infrastructure and
structured finance businesses further diversify our insured
portfolio while providing a competitive advantage through the
flexibility to capitalize on growth trends and pricing
opportunities when they are better in one sector than in
others.
“Over recent years, we were able to continue to produce solid
economic results through new business origination, effective loss
mitigation, reassumptions of ceded business, and acquisitions. Our
insured portfolio has amortized significantly in recent years,
partially as a result of low interest rates limiting new business
opportunities, while our claims-paying resources have remained
substantially the same – currently at approximately $11.5 billion –
significantly reducing our leverage ratios. As a result, based on
our understanding of S&P’s capital adequacy model, we estimate
that Assured Guaranty had $2.8 billion of capital in excess of
S&P’s AAA requirement at year-end 2017.”
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,
difficulties executing Assured Guaranty’s business strategy; those
risks and uncertainties resulting from changes in rating agency
models or opinions; adverse credit developments in Puerto Rico or
other portions of Assured Guaranty’s 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 June 26, 2018. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180626006629/en/
Assured Guaranty Ltd.Robert Tucker, 212-339-0861Senior Managing
Director, Investor Relations and Corporate
Communicationsrtucker@assuredguaranty.comorMedia:Ashweeta Durani,
212-408-6042Vice President, Corporate
Communicationsadurani@assuredguaranty.com
Assured Guaranty Municipal (NYSE:AGO)
Historical Stock Chart
From Apr 2024 to May 2024
Assured Guaranty Municipal (NYSE:AGO)
Historical Stock Chart
From May 2023 to May 2024