Moody's downgrades Assured Guaranty

Moody's Investors Service said it downgraded Assured Guaranty US Holdings Inc.'s senior unsecured debt to A2 from Aa3, its junior subordinated debt to A3 from A1, Assured Guaranty Ltd. (Bermuda)'s issuer rating to A2 from Aa3 and the contingent capital securities of Woodbourne Capital Trusts I, II, III, and IV to A1 from Aa2.

This concludes the review for possible downgrade that began on July 21, and the outlook is stable.

The agency said the downgrade primarily reflects its updated views on Assured Guaranty's exposure to weakness inherent in the financial guaranty business model.

The announced acquisition of Financial Security Assurance, Inc.'s financial guaranty business by Assured Guaranty Corp. is not expected to have a meaningful impact on the company's credit profile, but the agency said the acquisition will, if completed as planned, create a combined entity with substantial financial resources and a strong market position.

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