Moody's lowers CIFG

Moody's Investors Service said it downgraded the insurance financial strength ratings of CIFG Guaranty, CIFG Europe and CIFG Assurance North America, Inc. to Ba2 from A1 and kept the ratings under review with direction uncertain.

The agency said that the rating actions reflect the high likelihood that, absent material developments, the firm will fail minimum regulatory capital requirements in New York and Bermuda due to expected significant increases in modeled loss reserves on ABS CDOs.

Moody's said that its ratings on securities that are guaranteed or "wrapped" by a financial guarantor are generally maintained at a level equal to the higher of a) the rating of the guarantor or b) the published underlying rating.

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