Standard & Poor’s announced rating actions on several monoline bond insurers including a downgrade of XL Capital Assurance and XL Financial Assurance to ‘A-‘ from ‘AAA.’ The two companies remain on CreditWatch with negative implications. FGIC was also downgraded to ‘A’ from ‘AA’ and remains on CreditWatch with developing implications. Both Ambac Assurance Corp. and CIFG Guaranty had their ‘AAA’ financial strength rating affirmed and remain on negative outlook. MBIA Insurance Corp had its ‘AAA’ financial strength rating affirmed and was assigned a negative outlook. These ratings adjustments follow additional stress tests by the rating agency in the monolines’ non prime book of business.
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