Assured Guaranty ratings rationalised

Ratings agency Moody’s has upgraded the rating of subsidiaries of monoline insurer Assured Guaranty following the latter’s combining of its European businesses.

Moody’s has assigned Assured Guaranty (London) to A2 from Baa1 and Assured Guaranty (UK) also to A2 from A3.

The ratings agency will also withdraw ratings for these entities now that they have been merged into the Assured Guaranty Europe (AGE) business.

Assured Guaranty announced earlier this month that it had successfully completed the business combination of its European subsidiaries into AGE, which has resulted in all obligations and bonds insured by those subsidiaries will receive the same financial strength rating as AGE.

“This combination is significant for holders of bonds formerly guaranteed by AGLN [Assured Guaranty (London)], as they are expected to benefit from a significant ratings upgrade,” said Nick Proud, AGE chief executive, when the subsidiaries were combined.