Moody's downgrades Assured Guaranty

Moody's Investors Service said it downgraded Assured Guaranty US Holdings Inc.'s senior unsecured debt rating to A3 from A2 and junior subordinated debt rating to Baa1 from A3 and the contingent capital securities issued by Woodbourne Capital Trusts I, II, III, and IV to A3 from A1.

The agency also assigned an A3 rating to the $150 million equity-linked senior unsecured debt of Assured Guaranty US.

These ratings have been placed on review for possible downgrade.

Moody's also affirmed with a negative outlook Financial Security Assurance Holdings Ltd.'s A3 senior unsecured debt rating and Baa1 junior subordinated debt rating and the contingent capital securities of Sutton Capital Trusts I, II, III and IV at A3.

The agency said the ratings reflect their subordination to the insurance obligations of parent company Assured Guaranty, Ltd. and its insurance operating subsidiaries, which have suffered deterioration as a result of stress in residential mortgage-backed securities and constrained external business opportunities.

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