Moody’s Upgrades Assured Guaranty Corp.’s Rating and Affirms Assured Guaranty Municipal’s Rating

Rhea-AI Summary

Moody’s Investors Service upgraded Assured Guaranty Corp.’s (AGC) rating to A1 and affirmed Assured Guaranty Municipal Corp.’s (AGM) rating, both with stable outlooks. The upgrade reflects AGC’s improved credit quality and strategic role within Assured Guaranty Moody’s also affirmed Assured Guaranty ’s long-term issuer rating and debt ratings for subsidiaries.

Positive

• Moody’s upgraded AGC’s rating to A1, reflecting strong risk-adjusted capital adequacy and improved credit quality of the insured portfolio.

• Moody’s affirmed AGM’s rating due to its strong capital profile, conservative underwriting, and leading market position in the financial guaranty sector.

• Assured Guaranty continues to offer a valuable value proposition to both issuers and fixed income investors.

Negative

• None.

Upgrade of AGC to A1 (Stable Outlook) Reflects Improved Credit Quality of the Insured Portfolio and Increased Strategic Role within Assured Guaranty Ltd.

HAMILTON, Bermuda--(BUSINESS WIRE)-- Assured Guaranty Ltd. (NYSE:AGO) (together with its subsidiaries, Assured Guaranty) announced that Moody’s Investors Service (Moody’s) upgraded to A1 from A2 the insurance financial strength (IFS) rating of Assured Guaranty Corp. (AGC). Moody’s affirmed the A1 ratings of Assured Guaranty Municipal Corp. (AGM) and its subsidiary Assured Guaranty UK Limited (AGUK). The outlooks are stable.

In its rating action, Moody’s cited as part of its ratings upgrade rationale for AGC the following:

• “The upgrade of AGC’s IFS rating to A1 reflects the company’s strong risk-adjusted capital adequacy, the significant improvement in the credit quality of its insured portfolio over the past several years and an increased strategic role within the Assured Guaranty group of companies as evidenced by higher new business production.”
• “During 2023, AGC wrote or assumed nearly $11 billion of gross par exposure, which bolsters the company’s flow of embedded earnings associated with its unearned premium base.”

With regard to the affirmation of AGM’s rating, Moody’s cited AGM’s “strong capital profile, conservative underwriting of US municipal and international infrastructure finance risks and leading market position in the financial guaranty sector…AGM’s ability to organically generate significant capital through premium and investment earnings make its credit profile resilient to a broad range of stress scenarios.”

“We are pleased that Moody’s has upgraded AGC’s rating and recognized the improved credit quality of its insured portfolio and strategic position within Assured Guaranty. Moody’s also acknowledged AGM’s leading position in the bond insurance market, strong capital profile, ability to generate ‘significant capital’ through our premium and investment earnings, and the resolution of a large majority of the firm’s Puerto Rico exposures,” said Dominic Frederico, President and CEO of Assured Guaranty, in response to the upgrade. “Assured Guaranty is poised to continue growing its insured portfolio to sustain and increase its store of unearned premiums, its future earnings power and its financial strength. Assured Guaranty continues to offer a uniquely beneficial value proposition to both issuers and fixed income investors.”

Additionally, Moody’s affirmed the Baa1 long-term issuer rating of Assured Guaranty Ltd. It also affirmed the senior (Baa1) and junior subordinated (Baa2) debt ratings of Assured Guaranty US Holdings Inc. and Assured Guaranty Municipal Holdings Inc. The outlook for all the ratings is stable.

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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; Assured Guaranty’s continued demonstration of risk-adjusted capital adequacy; whether Assured Guaranty will be able to continue sustainable new business production; adverse credit developments in 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; 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 May 1, 2024. 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 (NYSE: AGO), 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 and certain of its investment management affiliates. More information on Assured Guaranty can be found at: AssuredGuaranty.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240501828571/en/

Investor Relations:

Robert Tucker, 212-339-0861

Senior Managing Director, Investor Relations and Corporate Communications

rtucker@agltd.com

Media:

Ashweeta Durani, 212-408-6042

Director, Corporate Communications

adurani@agltd.com

Source: Assured Guaranty Ltd.

FAQ

What are the upgraded ratings for Assured Guaranty Corp. and Assured Guaranty Municipal Corp.?

Moody’s upgraded Assured Guaranty Corp.’s (AGC) rating to A1 and affirmed Assured Guaranty Municipal Corp.’s (AGM) rating. Both have stable outlooks.

What were the reasons behind the ratings upgrade for AGC?

The upgrade of AGC’s rating to A1 reflects the company’s strong risk-adjusted capital adequacy, improved credit quality of the insured portfolio, and increased strategic role within Assured Guaranty

Who commented on the rating upgrades?

Dominic Frederico, President and CEO of Assured Guaranty, responded to the upgrades by Moody’s.

What is the stock symbol for Assured Guaranty ?

The stock symbol for Assured Guaranty is AGO.