NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) affirmed its insurance financial strength rating of AA+, with a Stable Outlook, for Municipal Assurance Corp. (MAC), a financial guaranty subsidiary of Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty)(NYSE:AGO) on July 14, 2017.
In the report, KBRA noted the following key strengths supporting MAC’s
Strong claims-paying resources which can withstand KBRA stress losses
in a run-off scenario with a comfortable balance remaining.
Diverse, high quality insured portfolio; no exposure to Puerto Rico.
Skilled and disciplined management and staff with deep expertise and
A mature and high-functioning operating platform supported by strong
governance and risk management systems.
“Once again, KBRA has affirmed MAC’s strong AA+ stable rating,
reflecting the high level of protection available to investors in
MAC-insured bonds,” said Dominic Frederico, President and CEO of Assured
Guaranty. “KBRA subjected MAC’s insured portfolio to rigorous
statistical modeling and concluded that MAC’s claims-paying resources
are able to withstand KBRA stress losses at a AAA rating level with a
comfortable balance remaining,” he added.
MAC is licensed to insure municipal bonds in all 50 states and the
District of Columbia. MAC was launched on July 22, 2013 to guarantee
only U.S. municipal bonds in the most well understood bond sectors such
as general obligations and tax-backed issues for cities, counties and
school districts, and public electric, water, sewer and transportation
revenue bonds. At March 31, 2017, MAC had $1.4 billion of claims-paying
resources and a $52.8* billion direct and assumed insured portfolio. Its
highly diversified insured portfolio generates predictable future
revenue from its embedded $284* million net unearned premium reserve,
which is part of MAC’s $1.1 billion investment portfolio.
In addition to the KBRA rating, MAC’s financial strength is rated AA
with a Stable Outlook by Standard & Poor’s Ratings Services.
*Based on Generally Accepted Accounting Principles (GAAP) reporting.
Any forward-looking statements made in this press release reflect
Assured Guaranty’s current views with respect to future events and are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks and
uncertainties that may cause actual results to differ materially from
those set forth in these statements. These risks and uncertainties
include, but are not limited to, those resulting from changes in rating
agency models or opinions, adverse credit developments in MAC’s insured
portfolio and the impact of those developments on rating agency models
and opinions, other risks and uncertainties that have not been
identified at this time, management’s response to these factors, and
other risk factors identified in Assured Guaranty’s filings with the
Securities and Exchange Commission. Readers are cautioned not to place
undue reliance on these forward-looking statements, which are made as of
July 17, 2017. Assured Guaranty undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by law.
MAC is a New York insurance company and a subsidiary of Assured Guaranty
Ltd., which is a publicly traded (NYSE: AGO) Bermuda-based holding
company. The operating subsidiaries of Assured Guaranty Ltd. provide
credit enhancement products to the U.S. and international public
finance, infrastructure and structured finance markets. More information
on Assured Guaranty Ltd. and its subsidiaries, including MAC, can be
found at AssuredGuaranty.com.