CIFG Comments on Rating Actions

CIFG Holding commented on the rating actions by Moody’s Investors Service and Fitch Ratings. Yesterday, Moody’s lowered CIFG’s rating to ‘A1’, with a stable outlook, from ‘Aaa’. Meanwhile, Fitch downgraded CIFG to ‘AA-‘, Negative Watch this morning. By contrast, last week Standard & Poor’s reaffirmed the firm’s ‘AAA’ rating. “CIFG is now in the unusual position of having three disparate ratings, which is sure to cause confusion among investors and issuers,” John Pizzarelli said. “Because each of the rating agencies is using a different methodology, it is very difficult for financial guaranty companies, like CIFG, to satisfy the divergent rating agency requirements.” Pizzarelli also said that the bond insurer is committed to working with the rating agencies to address their concerns. It is also actively pursuing a number of options to return the company to stability. “I am firmly committed to keeping CIFG as a going concern and building CIFG’s business franchise once we return to normal market conditions,” he said. He added that the firm’s immediate immediate goal is to protect policyholders as well as to enhance shareholder value.