Moody's comments on Assured's guarantee of FSA debt

Moody's Investors Service noted Assured Guaranty Ltd.'s recent announcement that it plans to withdraw voluntarily the debt securities of Financial Security Assurance Holdings Ltd. (FSA Holdings) from listing on the New York Stock Exchange and that Assured Guaranty will guarantee the senior and junior subordinated debt of FSA Holdings in the same manner that it guarantees the debt obligations of Assured Guaranty US Holdings Inc.

The companies' ratings remain on review for possible downgrade.

The agency said Assured Guaranty's announcement reflects its efforts to simplify its disclosure and is indicative of the ongoing integration of FSA Holdings and its operating companies into the Assured Group.

In Moody's view, the Assured Guaranty guarantee establishes the floor for the debt ratings of FSA Holdings. However, in consideration of the legal structure of the combined companies and the application of Moody's notching practice, the ratings of FSA Holdings' debt securities may differ from the ratings of Assured Guaranty at the conclusion of the ratings review.

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