Fitch cuts Assured Guaranty

Fitch Ratings said it downgraded the insurer financial strength rating of Assured Guaranty Corp. to AA- from AA and the insurer financial strength rating of Financial Security Assurance Inc. to AA from AA+.

Fitch said it also downgraded the debt ratings of the holding companies Assured Guaranty U.S. Holdings Inc. and Financial Security Assurance Holdings Ltd. to A-.

Specifically, Fitch lowered Assured Guarantee U.S. Holdings' $200 million of 7% senior notes due 2034 to A- from A, the company's $172.5 million of 8.5% senior notes due 2014 to A- from A and its $150 million series A junior subordinated debentures due 2066 to BBB+ from A-.

The agency said it lowered Financial Security Assurance Holdings' long-term rating to A- from A+, the company's $100 million of 5.6% senior notes due 2103 to A- from A+, its $230 million of 6.25% senior notes due 2102 to A- from A+, its $100 million of 6.875% senior notes due 2101 to A- from A+ and its $300 million junior subordinated debentures to BBB+ from A.

The ratings have been removed from negative watch and assigned a negative outlook.

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