Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers A > Headlines for Assured Guaranty Ltd. > News item |
S&P: Assured risk limited
Standard & Poor's said that Assured Guaranty Ltd.'s agreement to acquire Financial Security Assurance Holdings Ltd. appears to pose limited rating risk for any of Assured's rated entities, including Assured Guaranty Corp. (AAA/stable), or FSA Holdings' units, including Financial Security Assurance Inc. (AAA/watch negative).
"The transaction marks a continued reshaping of the bond insurance industry," said S&P credit analyst Robert Green.
On Nov. 14, Assured announced that it had reached an agreement with Dexia SA to acquire FSA Holdings, the parent company of FSA, the agency said, adding that it also announced that the $361 million cash portion of the total $722 million purchase price will be raised through an equity offering.
The agency said it understands that common shares to Dexia will account for the difference and it has been told that the equity offering is backstopped by a commitment by WL Ross & Co., which is expected to be supported by a letter of credit, cash collateral, or other form of support.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.