KBRA Affirms Assured Guaranty AA+ Insurance Financial Strength Ratings with Stable Outlook
27 Octobre 2023 - 3:30PM
Business Wire
Assured Guaranty Ltd. (NYSE:AGO) (together with its
subsidiaries, Assured Guaranty) announced that Kroll Bond Rating
Agency, LLC (KBRA) has affirmed the AA+ insurance financial
strength ratings of Assured Guaranty Corp. (AGC), Assured Guaranty
Municipal Corp. (AGM) and AGM’s U.K. and European subsidiaries
Assured Guaranty UK Limited (AGUK) and Assured Guaranty (Europe) SA
(AGE). All the ratings have Stable Outlooks.
In its October surveillance report affirming the AA+ ratings of
AGM and its U.K. and European subsidiaries, KBRA wrote:
- “AGM’s rating reflects its substantial claims paying resources,
skilled management team and ability to withstand KBRA’s
conservative stress scenario losses as applied across the company’s
insured portfolio.”
- AGM has an “[e]xperienced management team which operates with a
mature and high-functioning operating platform supported by strong
governance and risk management systems.”
- “Assured’s surveillance/work-out expertise platform-wide
continues to position the company well to mitigate risk and limit
losses, while growing its insured portfolio.”
- “Increased new business volumes, primarily in the U.S.
municipal sector, continue to offset run-off in the insured
portfolio.”
- “Municipal market insured penetration has increased and is
currently at its highest levels since 2009.”
- “KBRA views the environment for new business opportunities
across Assured’s diversified underwriting platform as robust and
notes that Assured’s market position has remained very
strong.”
In its October surveillance report affirming the AA+ ratings of
AGC, KBRA noted that:
- “AGC’s rating reflects its strong capital position and claims
paying resources relative to conservative stress scenario losses,
skilled management team and ability to withstand KBRA’s
conservative stress scenario losses as applied across the company’s
insured portfolio.”
- “[T]here are signs of increased activity in certain structured
finance sectors as well as international infrastructure.”
- “KBRA also reviewed AGC’s corporate governance framework,
credit and risk management processes and consider them strong and
reflective of industry best practices. AGC has a proven management
team and a well-developed governance framework.”
KBRA also noted that the COVID-19 pandemic in addition to other
events have “led to increased awareness for the financial guaranty
product. An economic environment of increasing interest rates and
volatile or widening credit spreads may enhance the business
environment for Assured as issuers seek interest expense savings or
investors consider different forms of regulatory capital relief.
Further, a tightening credit cycle which may disproportionately
impact economically sensitive taxes or issuers with weaker balance
sheets may further enhance investor demand for the product.”
In response to the report, Dominic Frederico, President and CEO
of Assured Guaranty, said: “As KBRA mentioned, demand for our
product has been growing over the past several years, and the
COVID-19 pandemic and other uncertainty has led to broader
recognition of the protection and value our guaranty provides
against unforeseen circumstances. We are pleased with the
affirmation of our AA+ (Stable Outlook) rating for AGC, AGM and
AGM’s U.K. and European subsidiaries and believe the economic
conditions for increased new business remain intact. We are well
positioned for future growth while maintaining our prudent credit
and risk management processes.”
Any forward-looking statements made in this press release,
including those regarding growth opportunities for Assured
Guaranty, demand for its product, and sustained economic conditions
for increased new business, 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, difficulties executing Assured Guaranty’s business
strategy; those risks and uncertainties resulting from changes in
rating agency models or opinions; adverse credit developments in
Puerto Rico or other portions of Assured Guaranty’s insured
portfolio and the impact of those developments on rating agency
models and opinions; insured losses in excess of those expected by
Assured Guaranty or the failure of Assured Guaranty to realize loss
recoveries that are assumed in its expected loss estimates for
insurance exposures; the possibility that Assured Guaranty’s
transactions with respect to its asset management business do not
result in the benefits anticipated or subjects Assured Guaranty
and/or its shareholders to negative consequences; 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
October 27, 2023. 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.
About Assured Guaranty
Ltd.
Assured Guaranty Ltd. is a publicly traded, Bermuda-based
holding company. Through its subsidiaries, Assured Guaranty
provides credit enhancement products to the U.S. and non-U.S.
public finance, infrastructure and structured finance markets.
Assured Guaranty also participates in the asset management business
through its ownership interest in Sound Point Capital Management,
LP. More information on Assured Guaranty can be found at:
AssuredGuaranty.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20231027402534/en/
Robert Tucker, 212-339-0861 Senior Managing Director, Investor
Relations and Corporate Communications rtucker@agltd.com
Media: Ashweeta Durani, 212-408-6042 Vice President, Corporate
Communications adurani@agltd.com
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