FGIC Loses AAA Rat­ing

The Washington Post - - National -

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.

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