S&P Global Ratings affirms Assured Guaranty AA financial strength rating with stable outlook
Assured Guaranty announced on July 21 that S&P Global Ratings has confirmed the AA financial strength rating, financial enhancement rating and issuer credit rating of its insurance subsidiary, and also confirmed the A issuer credit rating of parent company AGL. All rating outlooks are stable. In a report released on July 17, S&P gave positive comments to many indicators of Assured Guaranty. The rating agency pointed out that the company's "capital and earnings position is excellent," its capital adequacy ratio exceeds the "AAA" stress test level set by S&P, its competitive position is "very strong," its liquidity is "excellent," and there is no significant long-term liquidity risk. On the business side, S&P highlighted the company's diversified global underwriting strategy focused on U.S. public financial markets and noted rising demand in the global structured finance sector for bilateral transactions by international banks and insurance companies seeking regulatory capital relief. S&P believes that the company's diversified strategy gives it the flexibility to pivot to favorable markets as market conditions change, and that management's expansion into non-U.S. public financial markets is "both strategic and prudent." Assured Guaranty President and CEO Dominic Frederico said the company maintains its leadership position in U.S. municipal bond insurance and continues to execute its growth strategy while entering the annuity reinsurance market through its newly established subsidiary Assured Life Re. He stressed that the experienced management team has a deep understanding of the risks the company faces in executing its strategy.