Assured Guaranty AGC branch upgrade to AA + by KBRA

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HAMILTON, Bermuda – (COMMERCIAL THREAD) – Assured Guaranty Ltd. (NYSE: AGO) (together with its affiliates, Assured Guaranty) announced that on October 20, Kroll Bond Rating Agency LLC (KBRA) upgraded the financial strength rating of Assured Guaranty Corp to AA +. (AGC) of the previous AA rating of the financial guarantor. Additionally, KBRA confirmed its AA + financial strength ratings for US bond insurer Assured Guaranty Municipal Corp. (AGM); British financial guarantor Assured Guaranty UK Limited (AGUK) and European financial guarantor Assured Guaranty (Europe) SA (AGE). All ratings have a stable outlook.

In its October 20 monitoring report upgrading AGC to AA +, KBRA noted that:

  • “AGC’s upgrade reflects its stronger capital position against prudent stress scenario losses at a high confidence level as applied across its portfolio.”

  • “With the exception of two, all Puerto Rican credits insured within AGC’s portfolio are now covered by executed plan support agreements representing over 97% of net exposure. AGC has not paid the claims on the remaining credits. Although still subject to judicial certification, the agreements pave the way for an orderly exit from their respective Title III procedures. ”

  • “KBRA has also reviewed AGC’s corporate governance framework, credit and risk management processes and considers them to be strong and reflecting industry best practices. AGC has a proven management team and a well-developed governance framework.

In its October 20 surveillance report confirming the AA + ratings of AGM and its UK and European subsidiaries, KBRA wrote:

  • “AGM’s rating reflects its substantial claims settlement resources, skilled management team and ability to withstand KBRA’s prudent stress scenario losses as applied to the entire insured portfolio. of the society.

  • “An experienced management team that operates with a mature and successful operational platform, supported by strong governance and risk management systems. ”

  • “The assured penetration of the municipal market is at its highest level since 2009.”

  • “All but one insured Puerto Rican loan within AGM’s portfolio is now covered by executed plan support agreements representing nearly 92% of net exposure. AGM has still not paid any claims on the remaining credits.

  • “AGUK and AGE benefit from extensive intra-group financial support agreements.

Commenting on the COVID-19 pandemic, KBRA wrote: “Platform-wide, Assured has only paid relatively modest first-time insurance claims which it believes are owed at least in part to credit stress resulting specifically from COVID-19 and expects a near-full refund. . ”

In response to the report, Dominic Frederico, President and CEO of Assured Guaranty said: KBRA rating confirmed for other financial guarantors of Assured Guaranty. Our business has performed well and remained well capitalized during the pandemic, and we are well positioned for the future. As always, we are committed to maintaining a thoughtful and measured approach to underwriting a diversified insurance portfolio, and to continuing to offer a particularly advantageous value proposition for issuers and investors. As KBRA noted in its report, the penetration of bond insurance in the municipal market has reached its highest level since 2009, and we are proud to have led our industry throughout this period of growth.

All forward-looking statements contained in this press release reflect the current views of Assured Guaranty regarding future events and are made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and risks. uncertainties that may cause actual results. differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, difficulties in executing the business strategy of Assured Guaranty; risks and uncertainties resulting from changes in models or the opinions of rating agencies; the development, course and duration of the COVID-19 pandemic and the governmental and private actions taken in response, and the global consequences of the pandemic and these actions; adverse credit developments in Puerto Rico or other parts of Assured Guaranty’s insured portfolio and the impact of such developments on the models and opinions of rating agencies; insured losses greater than those expected by Assured Guaranty or the inability of Assured Guaranty to recover losses that are assumed in its expected loss estimates for insurance exposures, including due to failure to resolve the Exposure of Assured Guaranty in Puerto Rico in a substantial manner consistent with the accompanying agreements signed to date; other risks and uncertainties not yet identified, management’s response to these factors and other risk factors identified in documents filed by Assured Guaranty 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 21, 2021. Assured Guaranty assumes no obligation to publicly update or revise any forward-looking statements, whatsoever as a result. new information, events or the like, except as required by law.

Assured Guaranty Ltd. is a Bermuda-based listed holding company (NYSE: AGO). Through its subsidiaries, Assured Guaranty provides credit enhancement products to the US and international public finance, infrastructure and structured finance markets, and also provides asset management services. More information can be found on Assured Guaranty Ltd. and its subsidiaries on AssuredGuaranty.com.


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