Kroll Bond Rating Agency Assigns AA+ with Stable Outlook to Assured Guaranty Municipal Corp.
Assured Guaranty Municipal Corp. (AGM), the largest and most broad-based municipal bond insurance subsidiary of Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty)(NYSE:AGO) has been assigned an insurance financial strength rating of AA+, Stable Outlook, by Kroll Bond Rating Agency (KBRA). AGM is the second Assured Guaranty company to be rated AA+ by KBRA, which assigned the rating to Municipal Assurance Corp. in July 2013.
In its rating report, KBRA noted that:
- AGM demonstrates an ability to withstand KBRA’s conservative stress case loss assumptions across the breadth of its insured portfolio, with a comfortable balance remaining.
- The substantial and continuing runoff in structured finance components of AGM’s portfolio should continue to moderate risk.
- AGM’s mature and high-functioning operating platform is supported by strong governance and risk management systems.
- AGM’s tested management team is well positioned to address future portfolio risk issues should they develop.
“KBRA’s decision to assign AGM its AA+ Stable rating provides further validation of AGM’s business model and our disciplined approaches to risk exposure and capital management, all of which have been tested and proven before, during and since the Great Recession,” said Dominic Frederico, President and CEO of Assured Guaranty. “KBRA concluded that AGM would satisfy all claims in full and on time, with a substantial cushion remaining, in a stress case scenario based on robust statistical modeling enhanced with case by case performance analysis of key credits. We believe that KBRA’s rating methodology is thorough, objective, quantitative and transparent, providing investors with insight into KBRA’s reasoning.”
AGM is part of Assured Guaranty, the leading provider of financial guaranty insurance. Including AGM and its affiliates, the group has $12 billion of claims-paying resources. Assured Guaranty’s investment portfolio generates approximately $400 million of annual investment income from its high-quality, fixed-income investment portfolio. On average, $400 million of municipal bonds insured by Assured Guaranty companies trade each day.
Cautionary Statement Regarding Forward-Looking Statements:
Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, those resulting from Assured Guaranty’s inability to maintain its current financial ratings; further actions that the rating agencies may take with respect to the financial strength ratings of Assured Guaranty; adverse developments in Assured Guaranty’s insured or investment portfolio; and other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors identified in Assured Guaranty’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of November 13, 2014. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Assured Guaranty provides financial guaranty insurance through Assured Guaranty Municipal Corp., which is a subsidiary of Assured Guaranty Ltd. Assured Guaranty Ltd. is a Bermuda-based holding company that provides, through its operating subsidiaries, insurance products to the U.S. and international public finance, infrastructure and structured finance markets. More information can be found at: AssuredGuaranty.com.
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