FGIC Loses AAA Rating
Financial Guaranty Insurance Co., the world’s fourth-largest bond insurer, lost its AAA credit rating at Fitch Ratings after missing a deadline to raise capital.
The bond insurer was cut two levels, to AA, Fitch said. The company had been AAA since at least 1991. Moody’s Investors Service and Standard & Poor’s are also reevaluating their ratings.
FGIC guaranteed $21 billion of home-equity securities, $8.8 billion of subprime mortgage debt, and $10.3 billion of collateralized debt obligations backed by subprime mortgages and other loans, the Web site shows.